Rural round-up

March 17, 2016

It’s cyclic – ‘We will survive’  – Dirk Sieling:

Dairy economist Peter Fraser cannot go unchallenged. The anti-Fonterra and dairying bias he showed during his time at the Ministry for Primary Industries continues unabated.

His simple tactic of building a case on an unsubstantiated or false premise is typical of the misguided notions that often end up in the public domain.

In his March 7 article, he quotes data from the Reserve Bank showing that dairy farmers are borrowing about $3.5 billion per year “just to stay afloat”. This is just a nonsense.

Dairy farmers may well be borrowing that amount on average over time, but it is more often than not to buy another farm, build a new cowshed or convert drystock land to dairying.

But on the premise that it is “just to stay afloat”, he builds a scenario of lots of farmers going broke and collapsing land prices, all in a downward spiral. . . 

From a farming MP to her province – Barbara Kuriger:

The dairy industry is once again headlining news this week. I acknowledge this is a tough time for farmers. You and I as farmers know that the dairy pay-out is volatile; it rises and it dips and as a result of this, it has evolved as one of the most financially enduring industries in the agricultural sector. Falling dairy prices means it may be a tight year for many, and budgets are being adapted to counter this.

There has been much emotive talk by opposition about how our Government is ‘failing the dairy industry’, because they can’t actively step into this situation and raise the dairy pay out back to $8 kilogram MS. But the Government does have in progress three incredibly gutsy pieces of legislation that will assist the dairy industry, for which the benefits to dairy are widely unreported.  . . 

Dairy farmers forget past lessons – Mark Lister:

Milk is a cyclical commodity, and prices have been low before.

he long-term outlook for the dairy sector is strong, but the immediate future is highly concerning. Global prices are down 12 per cent this year and about a third lower than a year ago.

Against that backdrop, it was unsurprising to see Fonterra reduce its milk payout forecast to $3.90 per kg of milksolids this week. Adding in the dividend from Fonterra, the total payout will be about $4.25.

This is the lowest payout since 2006/07, and with a break-even price of about $5.30, the majority of farmers will suffer a second year of operating losses. . . 

Controlling dairy farm cost of production – Keith Woodford:

The key dairy priority at the moment, which stands above all else, is to minimise the number of New Zealand dairy farmers who will succumb to the current downturn. In particular, we all need to try and limit the damage to the latest generation of younger farmers who are often the most indebted.

It is all about getting the cost of production under control.

I have previously written about survival strategies and the need for each farm and farmer to chart his or her own path. I have also tried to caution against panicking and making big system changes when in a crisis. More particularly, I have tried to emphasise that hungry cows always kick their owners in the back pocket. Also, I regularly try and remind people that cost of production has both a numerator (which is cost) and a denominator (which is production). . . 

Irrigation funding boost for Wairarapa, Hawke’s Bay and Gisborne:

Primary Industries Minister Nathan Guy has welcomed three new investments totalling $1.6 million into irrigation projects coming from the Ministry for Primary Industries’ Irrigation Acceleration Fund (IAF).

The three irrigation projects receiving funding are in the Wairarapa ($804,000), Hawke’s Bay ($575,000), and Gisborne ($250,000).

“This funding helps support the development of irrigation proposals to the stage where they are investment ready,” says Mr Guy.  . . 

Funding for irrigation unlocks potential:

Irrigation New Zealand applauds the latest announcement by Government sighting three more grants by the Irrigation Acceleration Fund – $804,000 for the Wairarapa Water Use Project, $575,000 for Ruataniwha (Hawke’s Bay) and $250,000 for Gisborne’s Managed Aquifer Recharge Trial.

“It’s great to see the Irrigation Acceleration Fund delivering on what it was set up to do – supporting the potential for irrigated agriculture to contribute to New Zealand’s sustainable economic growth,” says Irrigation New Zealand chairwoman Nicky Hyslop. . . .

Research to set NZ sheep milk apart:

New Zealand’s sheep milk industry is set to benefit from ground-breaking research by AgResearch.

Two hundred people are attending the second Sheep Milk NZ industry conference, being held in Palmerston North this week (14th-15th March). The first conference last year attracted 160 people, with the rise reflecting the increased interest in the industry.

AgResearch scientists presented the initial results from two years of research from the $6 million MBIE-funded programme “Boosting exports of the emerging dairy sheep industry”, ranging from composition of New Zealand sheep milk through to best practice effluent management. . . 

Industry looks beyond radiata:

Future generations of New Zealanders may live in a patchwork landscape where several different forest species compete on the hills for growing space with the familiar Pinus radiata.

“Radiata is a great multi-purpose tree that grows well in many places. But it is not perfect for all growing situations or market needs. And there are obvious risks in having all our eggs in one species basket,” says Forest Owners Association research and development manager Russell Dale.

“We are therefore thrilled as an industry that the government is joining us in the Specialty Woods Products Research Partnership. This is a major programme that will investigate new products and markets for alternative species and build the confidence of forest growers in planting those species that show promise.” . . 

Fonterra’s Anmum Formula Hits Nz Shelves:

Fonterra’s internationally established infant nutrition brand Anmum is now available to New Zealand families.

Fonterra Brands New Zealand Managing Director Leon Clement says Anmum is a $200 million brand in Fonterra’s Asian markets with an established track record of quality and trust with parents.

“Anmum draws on Fonterra and its legacy companies’ 50 plus years of experience in dairy research and in producing paediatric formulas for third parties. Bringing Anmum to New Zealand families means we are now providing nutrition for key life stages,” he says. . . 

Growth Attracts 28 New Canterbury Milk Suppliers:

Synlait now has 201 milk suppliers for 2016 / 2017 to meet forecast growth in their value-added nutritional product business.

John Penno, Managing Director and CEO, said a combination of increased customer demand for nutritional products – such as a2 Platimum® Infant Formula – and increased production capacity with a new large scale spray dryer has created an opportunity for Canterbury dairy farmers to supply Synlait.

“We’ve had a very positive response to this opportunity, to the extent we have not been able to accept supply from everyone interested and we now have a waiting list,” said Mr Penno. . . 


Rural round-up

September 10, 2015

Number of TB infected herd numbers at all-time record low:

The number of bovine tuberculosis (TB) infected herds has dropped below 40 for the first time in the history of New Zealand’s TBfree programme delivered by OSPRI. According to this week’s figures, an all-time low of 36 herds were infected with bovine TB (34 cattle and two deer herds).

OSPRI Chief Executive, Michelle Edge, said ‘Reaching this milestone is a credit to farmers and the industry and Government organisations that are shareholders and investors in the TBfree programme and is a big step towards New Zealand becoming TB-free.’

Farmers, industry and Government partners working hand-in-hand with OSPRI have collaboratively made the programme one of the world’s leading TB control schemes. . . 

New Zealand’s Precision Seafood Harvesting Finalist In Global Seafood Champion Awards:

The new Precision Seafood Harvesting fishing technology being developed in New Zealand has today been announced as a finalist in Seaweb’s Seafood Champion Awards at Seafood Expo Asia in Hong Kong.

The Seafood Champion Awards annually recognise individuals and companies for outstanding leadership in promoting environmentally responsible seafood. PSH is a finalist in the Innovation category, which recognises efforts in advancing sustainability within the global seafood sector to effectively design products and processes with sustainability as a driving force. . . 

New Zealand Ambassador to Chair WTO Agriculture Negotiations

Trade Minister Tim Groser announced today that the members of the World Trade Organisation have appointed New Zealand’s WTO Ambassador, Vangelis Vitalis, as the new Chair of the WTO Doha Round agriculture negotiations.

Mr Vitalis was formally elected Chair at a meeting of the Special Session of the Committee on Agriculture held in Geneva today.

“I am very pleased that the WTO membership have once again underlined their trust and confidence in New Zealand’s WTO Ambassador for the role as Chair of the agriculture negotiations”, Mr Groser said. . . 

 

Fonterra Milk Volume Forecast:

Fonterra Co-operative Group Limited has maintained its milk volume forecast for the 2015-16 season at 1,589 million kgMS, which is in the range of 2-3 per cent lower than the amount collected last season.

Fonterra is required under the Dairy Industry Restructuring Act to update its current season forecast milk volumes by early September.

Group Director Co-operative Affairs Miles Hurrell said although Fonterra had forecast a 2-3 per cent decline in volumes there was evidence that farmers were pulling back on production, which could lead to a further downward revision of forecast volumes as we move through the season.

“Farmers are responding to the lower forecast Farmgate Milk Price by returning to more traditional farming practices. They are reducing the use of feed supplements, and lowering stocking rates per hectare as they concentrate on utilising pasture. . . 

 

Too many eggs in the whole milk powder (WMP) basket – Keith Woodford:

For some time there has been a view developing within New Zealand that we have too many eggs in the dairy basket. There is also a view that we are over-exposed to China.

I do not share those perspectives, at least when they are expressed in such over-arching and simplistic terms. In contrast, I note that dairy is one of the things we are good at, and that our pastoral dairy resources are not easily put to alternative profitable use.

Yes, we could go back to sheep production, but I do not know where we would profitably sell the increased meat volumes. For beef, there are markets, but most of our beef is a by-product of dairy. It is hard to make money from beef cows. . . 

Fonterra Opens New Manufacturing Facility In Indonesia:

Fonterra Co-operative Group Limited has officially opened its new blending and packing plant in Indonesia – its first manufacturing facility in the country.

Chairman John Wilson said the plant is Fonterra’s largest investment in ASEAN in the last decade and will support the growth of Fonterra’s brands – Anmum, Anlene and Anchor Boneeto – in Indonesia.

“Fonterra has been supplying high quality dairy nutrition to Indonesia for more than 30 years and today it is one of our most important global markets. The opening of our new plant is an exciting step forward in our relationship with the country and local dairy industry,” he said. . . 

Dairy Women’s Network conference details announced:

Dairy Women’s Network has decided to take its cue from the dairy industry and curtail its next annual conference, at a time that the industry and its members are hurting.

The Network had planned to hold the 2016 conference in Wellington over two full days in May.

“The Wellington location would have meant more people from the North Island needed to fly than if we held it in a central North Island location,” said de Villiers. . .

MPI and cruise industry to combat fruit fly risk:

The Ministry for Primary Industries (MPI) will work closely with the cruise ship industry this season to manage biosecurity risk, especially fruit fly.

The cruise sector is expecting a record season, with passenger numbers forecast to jump 33% to 267,800.

“This, coupled with the enhanced fruit fly threat across the Tasman and other parts of the Pacific, has brought MPI and the cruise industry together to improve biosecurity,” says Stephanie Rowe, MPI’s Head of Intelligence and Operations. . . 


Rural round-up

July 18, 2013

Big increase in water for irrigation for SC possible – Matthew Littlewood:

The equivalent of nearly 250 Hagley Parks worth of extra land could be freed up for irrigation in the Orari and Opihi catchments, if the right measures are in place.

Environment Canterbury water management scientist Brett Painter told this week’s Orari-Opihi-Pareora water management committee meeting that adjustments to the Rakaia Water Conservation Order could be a “game changer” for sourcing extra water for the South Canterbury Catchment.

Painter said “at the extreme end”, enough water for an extra 42,000ha of irrigation could be made available. . .

Not sure it’s realistic for farmers to own the meat industry – Allan Barber:

There is a lot of noise about the dysfunctional or broken meat industry accompanied by the suggestion it would be solved if farmers owned a bigger slice of it.

The Meat Industry Excellence group has been touring the country since earlier this year, holding farmer meetings and trying to drum up support for fixing the industry’s problems. In total some 3,000 farmers attended meetings from Gore to Gisborne which, even if every attendee was firmly in support, only represents a maximum of 20% of sheep and beef farmers. . .

Farmlets tipped for Glencoe Station – Grant Bryant:

Two huge players in Queenstown’s high finance, development and winery scene are set to carve up a large chunk of Glencoe Station for clusters of two-acre farmlets.

In recent years the area on the Crown Range above Arrowtown has become the home and playground of the mega-rich, with fabulously wealthy and enormously reclusive music producer Robert “Mutt” Lange snapping up 8500ha of the high-country station for an undisclosed amount in 2009.

New Zealand international sailor and prominent America’s Cup captain Russell Coutts is a next-door neighbour to the station, with his holiday home boasting an underground pool and golf course. . .

Forest Levy takes important step:

An application for the introduction of a levy on harvested logs has been lodged with Associate Minister for Primary Industries Hon Jo Goodhew. 

“This is an important step in the process of getting a Levy Order under the Commodity Levies Act and follows a successful forest grower referendum in March,” says Forest Growers Levy Trust chair Geoff Thompson.

“Officials will now take several months to assess the application and all the accompanying detail about levy collection, budgeting and ongoing structure. We are fundamentally on target to introduce the levy from 1 January 2014.” . . 

Bovine bliss in a winter cow house  – Finian Scott:

Numerous South Island farmers have been putting in the hard yards, trekking out into waist deep snow in parts of the Mackenzie Country, firing up bulldozers and snow ploughs in an attempt to set tracks for stock and feed out.

Weather-hardened livestock do their best to hunt out natural shelter belts, prepping for the inevitable mad rush towards the trail of food snaking a path behind the steaming tractor and feed bin.

Meanwhile, as the doors roll up on a Cow House at Studholme, the cows inside look up, lazily, mid-chew, to see who this new “disturber of the peace” may be. . .

Fonterra cuts Anmum-branded product prices in China amid price-fixing probe – Paul McBeth:

Fonterra Cooperative Group, the world’s biggest dairy exporter, cut the price of its Anmum-branded products in China as the local regulator looks at potential price manipulation by major foreign firms selling into the world’s most-populous nation.

The Auckland-based cooperative will trim 9 percent from its Anmum maternal health products in mainland China from next month “to better meet consumer needs in light of recent industry-wide price revisions,” Fonterra president for Greater China and India, Kelvin Wickham, said in an emailed statement. . .

NZ Honey Comes under Scrutiny in Hong Kong. New Zealand’s Oldest Brand Says Tighter Export Controls Are Needed:

Airborne Honey, New Zealand’s oldest honey brand, believes the quality control of New Zealand honey export needs to be tighter, following recent feedback from the Hong Kong Consumer Council. On 16 July, New Zealand honey came under scrutiny in Hong Kong after the Hong Kong Consumer Council, a statutory body that protects and promotes consumer rights in Hong Kong, tested a number of well-known brands available in the region. The Consumer Council reports that a quarter of the 55 samples tested (from a number of countries, including New Zealand) have been adulterated with sugar, including Manuka. . .


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