Rural round-up

June 28, 2016

Sir William Gallagher Named Exporters Champion & Gallagher Named Exporter of the Year:

Gallagher is continuing to gain recognition for its commitment to international markets, picking up two prestigious awards at the 2016 Air New Zealand Cargo ExportNZ Awards tonight.

In recognition of his vision, determination and success, Gallagher Chairman and Chief Executive Officer, Sir William Gallagher, was named Exporters Champion for exemplary services to export, and the Gallagher business was named Exporter of the Year (total sales over $25 million).

Recognised as one of New Zealand’s most astute businessmen, Sir William has grown Gallagher into one of the largest and most successful private companies in New Zealand, employing almost 800 people domestically, another 400 globally and with annual revenues of more than $200 million. . . 

Rabobank Global Beef Quarterly Q2 2016: Volatility Challenges Beef Markets:

The Rabobank global beef index ticked up in Q1 2016 after declining for much of 2015. However it shows signs of dropping again as softening prices in the US and Canada battle strengthening prices in Australia and Brazil, according to the Rabobank Global Beef Quarterly Q2 2016.

“Volatility is a key theme across most markets at the moment“, says Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. “A range of factors are creating a degree of uncertainty, including the economy and exchange rates influencing Brazil, seasonal conditions impacting Australia, the economy impacting China, and market volatility impacting the US”. . . 

New cuts help keep venison on menus:

Venison exporters and Deer Industry NZ (DINZ) are promoting new cuts to chefs to increase returns from the whole deer carcass and to help keep venison on restaurant menus.

Venison production to April this year was down 20% on the same period last year, driven by herd rebuilding, with the hind kill down 25%. On 13 June the average stag venison schedule stood at $7.55 a kilogram, versus $6.67 a year before, an increase of 13%, despite a steady firming of the Kiwi against the US dollar and Euro in recent months. . . 

Bega first Aussie dairy producer to downgrade new season milk price forecast – Fiona Rotherham

(BusinessDesk) – Australian-listed dairy company Bega Cheese has released an opening farmgate milk price for the 2016/2017 season of A$5 per kilogram of milk solids, claiming analysts are not expecting an improvement in dairy commodity returns until the first half of next year.

Fonterra Cooperative Group and Australia’s biggest dairy processor Murray Goulburn are yet to announce their opening forecast for the new season in Australia though last month Fonterra set an early price of $4.25 for New Zealand suppliers. That was up 35 cents on the forecast milk price for the 2015/2016 season. Murray Goulburn said it would release its opening forecast after a board meeting at the end of this month. . . 

War on Weeds Dirty Dozen revealed:

Conservation Minister Maggie Barry has announced this year’s Dirty Dozen plants as part of the ongoing War on Weeds.

“This year we are going to have a baker’s dozen of weeds – with enemy number one the wilding conifer,” Ms Barry says.

“Wildings now cover approximately 1.8 million hectares of land and are advancing at around 5 per cent a year. They transform entire landscapes, ruin native ecosystems and take over productive land indiscriminately.

“Budget 2016 committed an extra $16 million over the next four years to control their spread and by working with regional councils, landowners and community groups we believe we can stem their advance.” . . 

Stricter rules for quarantine facilities:

Stricter new rules for approved quarantine facilities will reduce the chance of unwanted pests or diseases arriving in New Zealand from imported goods, says the Ministry for Primary Industries.

MPI released new rules earlier this month for New Zealand-based “transitional facilities”, which are used by importers to hold goods before they are checked for contaminants such as hitchhiking bugs or reptiles.

“The changes will see a major biosecurity shake-up for these facilities, particularly in the areas of training and auditing requirements,” says Paul Hallett, MPI Manager, Biosecurity and Environment. . . 

Tegal crows over year of plump sales:

Chicken processor Tegel’s strong local sales and record export earnings have led it to turn in a better full-year profit than forecast in its first year as a listed company.

The company, which listed on the New Zealand and Australian exchanges last month, reported a net profit of $11.3 million for the 12 months to late April.

That compares with a profit of $8.7m the year before and a forecast of $10m when it listed last month. . . 


Rural round-up

October 3, 2015

Federated Farmers’ President praises WTO and criticizes those stalling the TPP at Geneva Forum :

The last 20 years of the World Trade Organisation (WTO) have provided an objective framework on which to base our international trade and seen the organisation provide great assistance to small countries like New Zealand.

That was the message from Federated Farmers’ President Dr William Rolleston, Vice President of the World Farmers’ Organisation, in his address overnight to a WTO Public Forum in Geneva.

“New Zealand is a small country, which means our political influence bilaterally can be limited. Without WTO rules, disputes are more likely to be settled on bargaining power rather than the evidence,” said Dr Rolleston. . .

Fossicking in Fonterra’s annual report – Keith Woodford:

The release of Fonterra’s annual report on 24 September coincided for me with a long plane trip back from China. I used the time trying to work out what all the numbers really mean. It was not an easy task.

Fonterra’s annual report – like most reports from large companies –provides masses of numbers. Some are clearly there for public relations purposes. Others are there to meet the required rules of the International Financial Reporting Standards (IFRS). And then there is another set of numbers which Fonterra constructs according to its own rules.

These additional measures are called non-GAAP measures; i.e. ‘non-generally accepted accounting measures’. Fonterra itself acknowledges that these measures are not standard between companies, so comparison must be made with caution. . . 

‘Cloud of dread’ over Filipino workers:

A Filipino worker in the dairy industry says people with false documents are being denied visas and sent home, despite many of them not knowing their paperwork was wrong. 

Immigration New Zealand has confirmed it is investigating multiple work visa applications involving Filipino dairy workers in the South Island, after staff noticed false claims of work experience and qualifications on visa applications.

Roberto Bolanos is a dairy farmer in North Canterbury, who arrived from the Philippines 10 years ago.

Mr Bolanos said the problem started with recruiters in the Philippines who offered people dairy jobs in New Zealand, along with documents, at a cost of, in some cases, $15,000. . . 

Government to consider amending National Bovine TB plan:

An independent Plan Governance Group made up of representatives of funding organisations, OSPRI, and wider stakeholder interests, has reviewed the bovine tuberculosis National Pest Management Plan (TB Plan). Today it gave its final advice on the proposed changes to the TB Plan to the Minister for Primary Industries, Hon Nathan Guy. The changes build on the significant progress made by OSPRI under the current TB Plan.

The Plan Governance Group considered a range of technical and scientific advice, and strongly believes that the eradication of TB from New Zealand is both feasible and economically justifiable. The proposed changes to the TB Plan were consulted on with farmers, local communities, and other stakeholders in June and July this year. Over 400 quality submissions, covering a wide range of issues, were received on the draft Plan proposal, and the Plan Governance Group took them into account as it prepared its final proposal to the Minister. . . 

Rabobank Beef Quarterly Q3 2015: Traded Volumes Are Reaching Quota Limits:

New Zealand and Australia beef exports to the US are set to reach their quota limits in Q4. Meanwhile, global economic conditions—such as the appreciation of the US dollar and the depreciation of the yuan and the real—are having an impact on beef trade, according to the Rabobank Beef Quarterly Q3.

A strong US dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the yuan are curbing beef prices in China, and the devaluation of the real is expected to support Brazilian exports in the coming months. “With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade”, according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. . . 

Commission issues second draft determination on wool scouring assets application:

The Commerce Commission has released a second draft determination maintaining its preliminary view that it should allow Cavalier Wool Holdings (CWH) to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

The Commission released its preliminary view on CWH’s application in March 2015 and has since received further information and submissions from interested parties on various matters. The second draft determination has been released to allow interested parties the opportunity to submit on this new information.

Commission Chair Dr Mark Berry said having considered the new information, the Commission is still of the view that the public benefits of the acquisition would outweigh the loss of competition. . . 

Ballance thriving as it plans next 60 years:

Ballance Agri-Nutrients achieved record sales and returned $76 million to shareholders while keeping margins tight and prices affordable, Chairman David Peacocke told the annual meeting of shareholders in Tauranga on Wednesday.

He said the result for its financial year ended 31 May 2015 capped off a milestone year for the co-operative, which celebrated 60 years since the first shares in legacy company Bay of Plenty Fertiliser were issued. Noting the co-operative “not only survives but also thrives”, he said its core value of collective strength remained unchanged while it evolved to meet the current needs of farming.

“What has changed is that farmers are busier, operating over larger properties and working within increasingly tight environmental demands. So along with a secure supply of the right nutrients, we continually broaden our scope to tailor our products, our technology solutions and our advice for today’s farms, and the farms of the future.” . . .


Rural round-up

January 5, 2015

Is raw milk safe? Some pasteurisation facts. Why I won’t well Raw milk & what to look for in a raw milk supplier – Milking on the Moove:

Tragically a child in Australia has died as a result of drinking contaminated raw milk.

So the raw milk vs pasteurised milk debate begins again. The comments on this article from June this year show the diverse opinions.

I grew up drinking raw milk from the vat. We looked long and hard at selling raw milk. We looked at the issues and decided that raw milk was not for us. I’ll explain why.

Is raw milk safe or not? 

The quick answer is, it can be safe, but it can turn bad very quickly. . .

Silver Fern Farms profit unsatisfactory, but promises more to come – Fiona Rotherham:

Silver Fern Farms, New Zealand’s biggest meat processor and marketer, has returned to profit after two years of losses but admits it still needs to deliver more.

Net profit after tax was $500,000 in the year ended Sept. 30, a significant turnaround from the $28.6 million after tax loss the previous year while pre-tax profit was $1.8 million compared to a loss of $36.5 million in 2013, the Dunedin-based cooperative said in a statement.

Over the same period the company paid down $99 million in debt as part of a plan to reduce the company’s debt servicing costs. Total income was $2.32 billion, up from $2 billion the previous year while earnings before interest, tax, depreciation and amortisation was $68.1 million, a nearly $46 million improvement on the 2013 financial year. . .

Silver Fern Farms release audited result just before Christmas – Allan Barber:

The delayed and much anticipated final result for Silver Fern Farms’ 2014 year has made it into the public arena in time for Christmas. Although it has squeaked in just above breakeven for the year at $1.8 million pre-tax and $0.5 million after tax, this is worse than the original guidance of $5-7 million announced at the end of October.

The difference is accounted for by a $3.3 million provision following a ruling by the Employment Relations Authority in relation to a technical redundancy arising from the closure of the Silverstream plant in 2013. From recollection SFF laid off staff on the basis of a seasonal shutdown, although at the time the company announced that it was unlikely to reopen unless stock numbers increased significantly.

The ERA’s ruling suggests this automatically implies a technical redundancy situation, whereas SFF believes not. The company has sensibly chosen (requested by the auditors?) to make the provision “while we consider our next steps over the coming month” according to chairman Rob Hewett. The time taken to reach this decision indicates the auditors must have refused to sign the accounts without this provision. . .

Year of contrasts for rural New Zealand:

It has been a year of contrasts for rural New Zealand, weather-wise and in other ways.

In Northland, for instance, while some farmers were emerging from drought, others were battling floods.

And dairy farmers saw record milk payments for the past season plunge from above eight dollars a kilo to below five dollars in a few short months.

Pondering on that is Waikato University’s professor of agribusiness, Jacqueline Rowarth.

“Hooray, hooray for good prices and then far more of a crash than actually was predicted by any of the analysts, though the banking ones were saying ‘watch out, we don’t think it’s going to be as good as you’re saying’, but of course they’re still saying that and there are some fairly dire predictions by the end of the year. . .

Rabobank Beef Quarterly Q4: Supplies remain tight amid robust consumer demand:

Rabobank’s Beef Quarterly Q4 reports that tight global cattle and beef supplies continued in Q4 2014, although prices tempered from their Q3 highs. The US remains the major global driver, with import demand affecting prices and volumes for other countries. A big question heading into 2015 with such a finely balanced market is—if Australian export rates decrease and herds in Mexico and Canada continue to be run down by the US—whether a new norm has been reached for prices or whether they still have room to rise.

“The US continues to be the driver in the global beef market with constrained supply and strong demand keeping prices high. A recent strengthening in the US economy and dollar will support continued imports to the US however we are watching a drop in the oil price and depreciation of the Russian Ruble given Russia’s status as the world’s largest beef importer”, explains Rabobank analyst Angus Gidley-Baird.  . .

Wine industry shows continued increasing profitability:

2014 financial benchmarking survey supports industry-wide optimism

The turnaround in the New Zealand wine industry has continued in 2014 on the back of improved profitability across wineries of all sizes, according to the ninth annual financial benchmarking survey released today by Deloitte and New Zealand Winegrowers.

Vintage 2014 tracks the financial results of wineries accounting for over 40% of the industry’s export sales revenue for the 2014 financial year. Survey respondents have been categorised into bands according to revenue to assist comparison within the industry.

Deloitte partner Peter Felstead says that for the first time since 2007, every category showed profitability before tax, ranging from 3.3% to 17.6%. . . .

New technology helps in fight against pests – Adrien Taylor:

A New Zealand inventor hopes to add drones to the fight against pests.

He won $25,000 to help turn his dream into reality and a trial of his Trap Minder system is taking place on Great Barrier Island this summer.

Scott Sambell and his dog Millie are finding that keeping Glenfern Sanctuary pest-free can be hard work.

The 240 hectare peninsula is cordoned off by a pest-proof fence to protect native wildlife, but that doesn’t stop a handful of unwanted predators making their way in every year. . .


Rural round-up

May 30, 2014

AgResearch makes changes to Invermay plans –  Vaughan Elder:

AgResearch has made some changes to its plan to slash jobs at Invermay, but the majority of staff will still be moving north to Lincoln.

Invermay staff, along with those affected by planned restructuring at AgResearch’s other campuses, learnt their fate today, with the organisation making a final announcement – as signalled in today’s Otago Daily Times.

There were some changes made to its plans for the Invermay campus, with three deer researchers no longer relocating to Lincoln and the creation of two new science roles. . .

Give AgResearch a chance:

Federated Farmers understands that with any major decision there will be concern, however, it is asking people to look at the best strategic outcome for New Zealand agricultural science.  Above all, to give AgResearch the chance to reform itself as a 21st Century Crown Research Institute.

“I think farmers should welcome the way AgResearch has listened to reason because Invermay’s future has been enhanced over the original proposals,” says Dr William Rolleston, Federated Farmers Food Production Sciences spokesperson.

“There have been some regional gains for those in the south and north, with the Invermay and Ballantrae hill country farms being kept for sheep, beef and deer research.  Invermay will clearly become the centre for deer research.

“We must remember that this restructure is not this year, next year or even the year after.  We are talking 2017 and while one out of every four scientific or technician roles will be asked to relocate, that means 75 percent will not. . . .

DINZ welcomes finalisation of AgResearch’s Future Footprint:

Deer Industry New Zealand (DINZ) has welcomed announcements, made today by AgResearch, finalising the shape of its ‘Future Footprint’ restructuring.

DINZ Deputy Chair, Jerry Bell, said that it is important that the plan is now finalised, giving certainty to the staff who will be affected, and DINZ was satisfied that the final changes to ‘Future Footprint’ were significant and a good outcome for both Invermay and the deer industry.

“While we accepted the strategic rationale for Future Footprint, we have been concerned throughout that such strategic change can be very disruptive and can contribute to a loss of important people. In that context, it’s great to draw a line under the process.” . .

Consultation on the sale of raw milk to consumers:

The Ministry for Primary Industries (MPI) is asking for public feedback on options for the sale of raw milk to consumers.

MPI’s deputy director general Deborah Roche says any changes would need to balance people’s desire to buy and drink raw milk with the requirement that food safety risks are properly dealt with.

“It’s clear that there is still a demand for raw milk and that more and different options for its sale need to be considered. It’s important people have the opportunity to comment on this matter so that MPI can consider all viewpoints before making any recommendations for change. I would encourage anyone that has an interest in raw milk sales to consumers to have their say,” Ms Roche says. . .

New president for Federated Farmers Marlborough:

Federated Farmers would like to welcome our new Marlborough provincial president, Greg Harris, who is replacing Gary Barnett, following their Annual General Meeting.

“Greg has been a part of Federated Farmers for 20 years and is well versed on the issues surrounding the Marlborough region, having stepped up from the provinces’ Meat & Fibre Chairperson role,” says Bruce Wills, Federated Farmers National President.

“I would like to thank outgoing provincial president, Gary Barnett for his service to the province and Federated Farmers; he has been an integral part of the Federation.

“We are in a year of change within the Federation, with leadership changes throughout the organisation both nationally and provincially, Greg is an incredibly passionate advocate for the farming community and I know he will do a fantastic job,” said Mr Wills. . .

Rabobank recruits new animal proteins analyst:

Rabobank welcomes new-comer Angus Gidley-Baird, appointed as a senior animal proteins analyst to cover the sheep and beef sectors, joining the bank’s Australia & New Zealand Food & Agribusiness Research and Advisory division.

General manager of Rabobank’s Food & Agribusiness Research and Advisory Luke
Chandler said Angus’ appointment brought to the team a great depth of agricultural knowledge, as well as mainstream political and economic policy awareness.

“Angus’ entire career has been spent in agribusiness and throughout this time, he has gained a very strong foundation in the sorts of issues impacting farmers and industry stakeholders all the way through the supply chain,” Mr Chandler said. . .

Orange roughy ecolabel to assist exports:

Sealord has welcomed the next step in the journey to have New Zealand orange roughy globally recognised as a sustainable seafood choice.

Three of the main orange roughy fisheries have been submitted for assessment by the Marine Stewardship Council to verify if they can carry the world’s best known marine ecolabel.

New Zealand’s quota management system has allowed industry and government to work together to achieve this and Sealord Fishing General Manager, Doug Paulin, says that MSC certification will provide an additional assurance to customers.
“Globally, New Zealand seafood has a great reputation and Sealord customers will be supportive of this new measure to show retailers and customers alike orange roughy is a sustainable choice,” said Paulin. . .

Boutique Wine Festival Brings the Best of New Zealand to Auckland:

After a successful launch in 2013, the second annual New Zealand Boutique Wine Festival is set to return to Auckland’s Imperial Building on Sunday 15 June 2014.

This year’s festival will see 21 boutique vineyards from around New Zealand showcasing more than 200 wines across a huge range of varietals, creating a one-of-a-kind cellar door experience.

Throughout the day, event attendees will be able to explore wines from different regions, enjoy fantastic food and wine pairings, great live music, and participate in blind tasting seminars throughout the day. . .


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