Rural round-up

December 6, 2018

Dairy product prices climb as whole milk powder gains – Margaret Dietz:

(BusinessDesk) – Dairy product prices rose at the Global Dairy Trade auction, stemming a decline that began in May.

The GDT price index gained 2.2 percent from the previous auction two weeks ago. The average price was a US$2,819 a tonne, compared with US$2,727 a tonne two weeks ago. Some 36,450 tonnes of product was sold, down from 42,966 tonnes two weeks ago.

Whole milk powder climbed 2.5 percent to US$2,667 a tonne. . . 

Dairy bosses are best employers:

In the first-ever Primary Industries Good Employer Awards dairy farmers Ben and Nicky Allomes won the top accolade, the Minister of Agriculture’s Award for Best Primary Sector Employers.

Woodville dairy farmers Ben and Nicky Allomes have been named the Best Primary Sector Employers. 

The couple, who own Hopelands Dairies, also won the Innovative Employment Practices award. . . 

Fonterra reaches provisional deal with Beingmate:

Fonterra Cooperative Group has reached a provisional deal with Chinese partner Beingmate Baby & Child Food to unwind their Darnum joint venture in Australia.

The joint venture – 51 percent owned by Beingmate and 49 percent Fonterra – produced infant formula products at the Darnum plant in Australia for Beingmate’s Chinese customers, and was a key component of Fonterra’s plan to expand its reach into China’s second and third-tier cities. . . 

Voting for the 2nd Fonterra Directors’ Election is underway:

Voting is now open for the 2018 Fonterra Board of Directors’ Second Election.

Only two candidates from the first election, Leonie Guiney and Peter McBride, obtained more than 50% support from voting shareholders. The Rules of the first election state that if not enough candidates obtain more than 50% support, there must be a second election. . . 

Dairy loan done on a handshake, details to follow:

It beggars belief that the Government has dispensed a $9.9 million low-interest loan to a dairy company without having finalised the terms, National’s Economic and Regional Development spokesperson Paul Goldsmith says.

“The Minister in charge of the Provincial Growth Fund couldn’t tell the House what terms he had in mind when he undercut commercial lenders to provide debt funding for a new processing plant.

“I wouldn’t blame any business like Westland Milk for accepting a cheap loan from a secure lender. . . 

Apple producer’s underlying profit looks to be at top end:

Apple producer Scales has had a bumper year with a record export crop lifting profits to the top end of guidance.

The company’s underlying profit was likely to be at the top end, or slightly exceed, the current guidance range of $58 million to $65m, in the year ending December.

Managing director Andy Borland said it was an excellent performance for the group, with all business units performing well over the year. . . 

New Landcorp chair appointed:

Dr Warren Parker has been appointed as Director and Chair of Landcorp, the Minister of Finance Grant Robertson and Associate Minister of State-Owned Enterprises Shane Jones announced today.

Dr Parker is a former Chief Executive of Scion (the NZ Forest Research Institute) and Landcare Research, and was previously Chief Operating Officer of AgResearch. He currently holds a number of board roles including on Predator Free 2050 Ltd, Farmlands Cooperative Society, Genomics Aotearoa and is the Chair of the Forestry Ministerial Advisory Group. Until recently he was Chair of the New Zealand Conservation Authority. . . 

Landcorp out of touch with real farmers:

Landcorp’s submission to Sir Michael Cullen’s Tax Working Group (TWG) is a kick in the guts to rural communities, National’s Nathan Guy and David Carter say.

“Landcorp’s sneaky submission to the TWG proposing a water tax, nitrogen fertiliser tax and not opposing a capital gains tax proves how out of touch the state-owned company is with farmers on the ground,” Mr Guy says.

“With 6700 other submissions, why was Landcorp pressured to put in a submission that was more than a month late? The reality seems to be that the TWG are hell-bent on introducing environmental taxes and a capital gains tax, so they leaned on Landcorp to submit supporting more taxes and levies. . . 

New president and vice president elected to HortNZ board:

The Horticulture New Zealand board elected Barry O’Neil as its new President and Chairman at a meeting today. Mr O’Neil replaces Julian Raine, who has been President and Chairman for six years and who has made a significant contribution to horticulture for New Zealand. Mr Raine has stood down to pursue other business interests.

Bernadine Guilleux was elected Vice-President, with both positions effective from 1 January 2019. . . 

Busy orchardist advises small businesses start payday filing:

A Hawke’s Bay orchardist is advising fellow small businesses to be ahead of the game on payday filing.

This is the mandatory requirement from April next year for employers to file their payroll information to Inland Revenue every time they pay their staff.

Te Mata Figs owner Helen Walker has been paying her five staff fortnightly and sending across their details using the online entry method in myIR. . . 


Rural round-up

April 24, 2018

Precious arable land – Eric Crampton:

I just don’t get the fixation with making sure that nobody builds a house on agricultural land.

The government plans to make it harder for councils to approve new homes and lifestyle blocks on productive land near urban areas.

A report out today, called Our Land 2018, shows New Zealand’s urban sprawl is eating up some of the country’s most versatile land.

It highlights that between 1990 and 2008, 29 percent of new urban areas were built on some of the country’s most versatile land. . . 

We are growing houses instead of food – Feds:

We are losing our most productive land to houses – that’s the most significant point Federated Farmers takes from the ‘Our Land 2018’ report released today.

The Ministry for the Environment report shows the pressure New Zealand agriculture is under from the loss of highly productive and versatile land due to urbanisation.

There was a 10% increase in urban areas from 2002 to 2012 and the loss would be even more now with the pressure on housing in the last few years. . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . .

 A2 shifts from a brand to a category, with Nestle and Mengniu now on board – Keith Woodford:

It is only six weeks since mega-sized Fonterra in New Zealand and medium-sized Freedom Foods in Australia announced their intention to produce A2 dairy products, these being products free of A1 beta-casein.  Since then, both Nestle and Mengniu have stepped up to announce that they too are developing brands for A2 infant nutrition products.

To place this in perspective, and as reported by Rabobank, Nestle is easily the largest global dairy company by turnover, followed by Lactalis, Danone, Dairy Farmers of America and then Fonterra. Further down comes Mengniu at number 11 globally, but number 2 in China.

It is now evident that dairy products free of A1 beta-casein are shifting from being a niche brand belonging to The a2 Milk Company (A2M) to becoming a broader dairy category. This was always going to happen, but the speed at which it is now occurring is taking most people by surprise. . . 

Livestock Improvement buys back $5.3M of shares to simplify structure – Tina Morrison:

 (BusinessDesk) – Farmer-owned cooperative Livestock Improvement Corp will buy back $5.3 million of its shares as part of its move to simplify its share structure.

In March the company’s shareholders voted to reclassify all cooperative control shares and investment shares into a single class of ordinary shares. Livestock Improvement said today that a small number of shareholders had elected to exercise their minority buy-out rights under the proposal. . . 

#SustainabilitySunday: A tale of two farms – Uptown Farms:

What you see above is crazy exciting for our family!

These two pictures are from two fields, only separated by an old fence row. The photos were taken about 4 foot apart. 

The farm in the bottom photo has been traditionally managed for north Missouri row crop farms. You see larger and more compacted soil clods, fairly typical of dirt in the area. 

On the farm in the top photo we have been using no-till and cover crop practices for three growing seasons. What you see, and would feel if you were here, is a light and loose soil. It’s full of organic matter without any compaction. (Think of potting soil compared to dirt from your backyard.) 

We have actually added soil to this farm by allowing crop residue and cover crops to decompose and turn to dirt. In only three years, we have changed the soil makeup of our farm.  . . 

Scales hunts for NZ agribusiness acquisitions to fit with apple export business – Tina Morrison:

 (BusinessDesk) – Scales Corp is eyeing potential agribusiness acquisitions that would fit well with its export apple business as the country’s largest apple grower aims to become the foremost investor in and grower of New Zealand agribusiness.

“We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia,” chief executive Andy Borland told BusinessDesk. “We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities.” . . 

Good Idea! Feds Likes NZX Primary Sector Index Concept:

Federated Farmers congratulates the New Zealand Stock Exchange for coming up with the idea of creating a ‘primary sector index’ for investors.

The NZX intends to launch the new primary sector index later this year, where it will sit alongside the existing indices for other sectors such as energy, healthcare and real estate.

The index will include 15 companies, including Fonterra and A2 Milk. . . 

China begins to challenge multinationals in domestic infant formula market, says GlobalData :

CITIC Agri Fund Management, backed by Chinese state-owned CITIC Group, has recently agreed to buy a 25.18% stake in Hong Kong-based Ausnutria Dairy, one of the leading local suppliers of infant formula in the Chinese market. This clearly marks a change in direction for the government, which has hitherto been focusing its efforts on regulation in this sector, says leading data and analytics company GlobalData.

Local suppliers in China are yet to recover from the melamine contamination scandal in 2008, with parents continuing to put their faith in foreign-made milks even after a decade. . . 


Rural round-up

May 20, 2015

Better returns trump loyalty – Hugh Stringleman:

Fonterra must put more effort into understanding why it is losing market share and therefore its shareholder capital is being diluted, major supplier Trevor Hamilton says.

Family-owned TH Enterprises (THE), which has 10 big dairy farms in the North and South Islands, has “driven a bus through Trading Among Farmers (TAF)”.

Founder and chief executive Hamilton said THE directors, including two independents, had exposed the weaknesses of TAF by making perfectly reasonable and sound business decisions over the past 30 months to cash in shares, to buy more farms and divert half of the milk supply to other processors. . .

TAF delivers what it promised – Hugh Stringleman:

Trading Among Farmers (TAF) has delivered what farmer-shareholders wanted in the way of more flexibility as well as capital security for Fonterra, equity analysts have said.

The 2012 restructure created a new generation of hybrid co-operative in which farmers were able to sell the economic rights of supply shares into the Fonterra Shareholders’ Fund (FSF) but retain co-operative control and voting rights.

The fund had grown to $713 million at the interim balance date January 31 with the economic rights of just under 122m shares. . .

 Sheep numbers down but productivity up – Jamie Mackay:

News last week our national sheep flock had dropped below 30 million for the first time since 1943 probably surprised no one but, regardless, it’s a damning and telling statistic for a once all-conquering industry.

When I was a kid growing up on a Southland sheep farm, two things stuck in my head from my final year of primary schooling in 1972. . .

 Apple harvest appears positive – Alan Williams:

Scales Corporation subsidiary Mr Apple is busy packing this season’s apple crop and isn’t expecting a dramatic impact on yields from hail in Hawke’s Bay earlier this year.

The harvest was due to finish about now but packing operations would continue through to the end of June, Scales managing director Andy Borland said.

The incidence of hail damage would be revealed during the packing process. Borland estimated a “bit of an impact” but many of the orchards avoided the hail altogether, a benefit of the group strategy to spread the orchard across the fruit-growing region. . . .

New Zealand Young Farmers educating Tasman teens at Stock Skills Day:

New Zealand Young Farmers is providing an educational day for Canterbury teens wanting to learn more about stock judging and handling on Sunday 24 May at the Canterbury Agricultural Park.

Members of New Zealand Young Farmers High School Clubs, commonly known as TeenAg Clubs, in the Tasman region have been invited to take part in a hands-on, interactive one day program which aims to introduce students to a different aspect of the agriculture industry.

Students will participate in groups of twelve and move through modules as they would through a typical day of competition at an A & P Show; from prepping and handling through to judging and prize giving. Prizes will be awarded to the most engaged students. There will also be a clipping and shearing demonstration. . .

RailBike adventures begin pedalling into the Forgotten World:

The visitor industry in the central north Island is set to surge once again with the introduction of the country’s first tandem RailBike experience.
Operating along what is arguably known as New Zealand’s most scenic decommissioned railway; Forgotten World Adventures has added the RailBike product to its already impressive list of seasonal rail based adventures using converted golf carts, also known as RailCarts.

Waikato Farmer and Forgotten World Adventures founder and Managing Director Ian Balme believes the introduction of the RailBike is a timely step for a business that has seen exponential growth since it was launched in 2012.

“This season we’ve provided over 6,000 clients with an outstanding experience through the historic Forgotten World and I am thrilled that we’re now in a position to build on our existing range of tours by introducing what will undoubtedly become a must-do kiwi adventure for groups of up to ten people” says Mr Balme. . .

10 reasons we don’t need organic food:

1. Organic crops do not increase yield.

GMOs have increased yields by 22% with even greater success in developing nations.

2. Organic crops increase pesticide use.

GMOs have decreased pesticide use by 37% with even greater success in developing nations.

Organic herbicides only kill the plant tissue that it touches, requiring more to be sprayed, and more repeated spraying. Glyphosate, on the other hand, attacks a specific enzyme that is only found in plants. Farmers using glyphosate don’t need to cover all of the weed to kill it, and they don’t need to spray as often. . .

New Horizons for regional South Island:

A new fund has been announced this morning to help regional South Island tourism operators capture the tsunami of opportunities from the growing China market.

The ‘New Horizons Fund’ is a regional economic development programme initiated by Christchurch Airport, as part of the “South” initiative, which sees all 15 South Island regional tourism organisations working collaboratively in tourist markets.

The programme kicks off with a budget of $100,000 and aims to support a minimum of two South Island tourism operators into the China market each year. . .


Rural round-up

May 9, 2014

Solid Energy sells farms – Collette Devlin:

Solid Energy has sold its Southland dairy farms, but the state-owned company is yet to release the price it got.

About 2,000 hectares of the Eastern Southland rural property was sold by tender.

The properties included three dairy farms, two dairy support or conversion farms, and four properties considered as dairy support farms.

The farms, ranging from 33ha to 399ha, were within a 5-kilometre radius between Mataura and Gore.
Solid Energy bought the properties to secure access to the large lignite coal resource in the district, but no longer required the land. . .

Robo cows ready for milking – Diane Joyce:

Robots will be milking cows in Havelock North by early next year, and everyone will be able to stop in and see for themselves how it works.

Dairy farming could become a substantial earner for Hawke’s Bay if the latest robot technology is taken up by farmers, says the man behind the plan, Michael Whittaker.

A state-of-the-art 3500 square metre dairy barn is being built, in which the cows will decide how often they want to be milked and how often they want to head outside into the sunshine. For the 120 cows there will be two “self-milking” bays, to which the cows can wander whenever they chose. . .

Steady rise in milk prices over 50 years – Andrea Fox:

The milk price paid to dairy farmers has increased by an average of 11c a kilogram of milksolids a year over the past 50 years, new analysis by DairyNZ shows.

For DairyNZ senior economist Matthew Newman that was one of most interesting findings of the industry organisation’s economic survey for 2012-13, which also marked 50 years of economic analysis of key financial data from dairy farmers.

“That the milk price has continued to increase is not a recent phenomenon, although in the last 25 years it has shown more volatility and even increased volatility in the past six or seven years,” Newman said.

The trend had implications for farmers around risk management and how to manage changing prices, he said.  . .

MBIE’s dairy farm employee position statement positive:

With the employment practices of dairy farmers in the media spotlight, the Ministry for Business, Innovation and Employment’s (MBIE) Labour Inspectorate’s newly released position statement, is to be followed up by both Federated Farmers and DairyNZ.

“Dairy farmers can expect a joint Industry Best Practice Guidance note next week,” says Katie Milne, Federated Farmers employment spokesperson.

“Both Federated Farmers and DairyNZ endorses MBIE’s common sense position statement, which not only reminds employers about the Minimum Wage Act 1983, but reminds them ‘seasonal averaging’ has gone the same way as 245-T. . . .

Scales’ target continued growth – Alan Williams:

Apple grower Scales Corporation expects to lift production every year until about 2020 to take advantage of increasing demand in Asian and Middle East markets.

Apple consumption was growing strongly in big-population markets such as Thailand, China, Taiwan, and the United Arab Emirates, and was growing in India, chief executive Andy Borland said.

Scales subsidiary Mr Apple had been steadily replanting its Hawke’s Bay orchards with redder, sweet varieties such as Gala, NZ Queen, and Fuji, Borland said.

It was getting the increased production now and that would continue, because apples took 5-7 years to reach production peak, he said. . .

Tasked to wake sleeping giant – Alan Williams:

Nick Berry is off to work for the opposition, but he has never seen it that way.

In his 30 years in Fonterra’s retail store business RD1, it was always RD1 as a dairy specialist and PGG Wrightson a sheep-and-beef farm supplier.

“We didn’t see Wrightson as a real competitor. It was more CRT and Farmlands as the competitors,” Berry said.

Because of that background it isn’t such a big wrench that he’s going now to help Wrightson build its supply network to dairy farmers.

“We spoke of it as more of a sleeping giant, with its 100-plus stores, and I’ll be happy to help it grow,” he said. . .


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