Rural round-up

July 17, 2020

Government’s food and fibre reset lacks a core – Keith Woodford:

The Government’s new food and fibre reset document is PR aspirational fluff. The hard work remains to be done

On July 7 Prime Minister Jacinda Ardern released the Government’s document “Fit for a Better World – Accelerating our Economic Potential”. The associated  press release  from the Beehive says that it provides a 10-year roadmap for the food and fibre industries’.

At the same function where this report was released, Agriculture Minister Damien O’Connor released a companion document from his Primary Sector Council of chosen industry leaders.  That document is also titled “Fit for a Better World” but lacks the title extension about ‘accelerating our economic potential’.   This second document is indeed a different document, singing from the same song-sheet, but with considerably different material. Very confusing indeed!

My focus here is on the Government’s version of the report because this is the one that has been signed off by Cabinet. Minsters in attendance at the release also included Stuart Nash and Shane Jones. . . 

Concerns for shearing as overseas workers can’t get in – Susan Murray:

New Zealand’s traditional shearing routines could be thrown into disarray this summer if overseas shearers can’t get into the country.

The New Zealand Shearing Contractors Association said, nationally, at least two million sheep are shorn by international shearers.

The vice president, Carolyn Clegg, said farmers may have to re-design their shearing plans to avoid animal welfare issues, and it could have business implications too.

She said some lambs may not get shorn, or ewes may just get crutched, rather than fully shorn.

Taste Pure Nature one year on – Allan Barber:

A little over a year since the launch of the Taste Pure Nature country of origin brand in California, Beef + Lamb’s GM Market Development, Nick Beeby, is thrilled with the evolution of the programme. At the start a small number of meat exporters were supportive of what Beeby concedes was initially seen as a B+LNZ initiative, but 15 months later success in targeting specific consumer groups and expansion of the scheme into China have brought increased industry commitment. TPN is now viewed positively as a sector-led strategy and the meat exporters have injected huge momentum and drive in support.

Original participants included Lamb Company shareholders, Alliance, ANZCO and Silver Fern Farms, and Atkins Ranch and First Light, two exporters which stood to benefit from the tightly targeted digital strategy directed at the Conscious Foodie consumer segment in California. The initial strategy was to raise awareness and increase the preference for New Zealand grass fed, naturally raised and anti-biotic free red meat, and importantly to point consumers to where they can buy it. These strategic objectives remain the same. . . 

Craggy Range Winery staff celebrate being among World’s Best Vineyards – Shannon Johnstone:

Craggy Range Winery staff celebrated with, well, a glass of lunchtime wine, as they found they were sitting at number 17 among the World’s Best Vineyards.

This year, the winery placed among some of the world’s most respected wineries such as France’s Mouton Rothschild & Château Margaux, Italy’s Antinori, the United States Opus One and Australia’s Penfold.

It is one of two New Zealand wineries to make the list alongside Rippon in Central Otago.

Craggy Range director Mary-Jeanne Peabody said they were “thrilled” to have been recognised. Last year they placed 11th. . . 

HoneyLab does licensing deal with US company:–  Andrew McRae:

Health product company HoneyLab is to sell seven of its products in North America through a licensing agreement with American company Taro Pharmaceuticals USA Inc.

The agreement covers the sale of its kanuka honey products for the treatment of cold-sores, rosacea and acne, a bee venom-based cosmetic range and a product for joint and muscle pain.

Taro will be able to make and sell these licenced products in the US, Canada and Israel and they will be on shelves in stores sometime in 2021. . .

ASB appoints Ben Speedy as Rural General Manager:

ASB is pleased to announce that Ben Speedy has been appointed to the bank’s leadership team in the role of general manager, Rural.

Speedy joins ASB from his previous role as New Zealand Country Manager for Core Logic International.

Speedy grew up on a farm and started his career with BNZ after graduating from Massey University with a Bachelor of Applied Science in Farm Management and Rural Valuation, and Post-Graduate Diploma in Business Administration (Marketing).

As an Agribusiness Graduate he worked his way up to become Senior Agribusiness Manager in Hawke’s Bay. . . 


Rural round-up

May 8, 2020

Concern farmers’ wellbeing affected: –  David Hill:

North Canterbury Rural Support Trust chairman Andy Munro is concerned for the wellbeing of farmers as they negotiate the ongoing effects of a dry season and the Covid-19 lockdown.

He said last month’s rain was “a great morale booster” for farmers in the drought-affected area in North Canterbury.

“Since that rain four weeks ago, things went pretty quiet. But it’s just a pity we haven’t had a follow-up rain and we really need a good warm follow-up rain, particularly for the farmers from Waipara north to get some growth before winter.

“It’s starting to get dry and cold in that northern part, but other than that it’s business as usual. . . 

Farmers need to be heard not patronised:

The Government’s drought recovery advice fund announced today is merely a drop in the bucket for supporting farmers affected by drought, National’s Agriculture spokesperson Todd Muller says.

“The fund is specifically for providing affected farmers with recovery and planning advice, but does not contribute to farmers’ rising feed costs or general business costs.

“Most farmers already know what is needed to help their business recover and it is insulting for the Government to tell them they simply need to seek more advice to get through the drought. . . 

Rural GPs not just another business – Peter Burke:

Rural General Practice Network chair Dr Fiona Bolden is disappointed that the Government is treating rural general practices the same as any other business in the community.

Bolden told Rural News that rural GPs were expecting to get two payments from the Government to assist them financially.

However, she says while they had received the first payment, Cabinet vetoed the second payment – just days before it was expected to be paid.  . .

Differing responses to wage subsidy scheme – Allan Barber:

The country’s meat processors have followed two distinctly different paths in response to the government’s wage subsidy scheme which is available to all businesses for 12 weeks, providing they can substantiate a 30% drop in revenue during the period. Silver Fern Farms, Alliance, ANZCO, Taylor Preston and Blue Sky Meats have all claimed the subsidy to varying extents, whereas AFFCO, Greenlea and Wilson Hellaby have decided it is not justified or necessary, at least partly on ethical grounds.

The contrast in approach has already been commented on by independent economist, Cameron Bagrie, who has slammed the two largest claimants, SFF which has claimed $43 million and Alliance $34 million, for taking advantage of taxpayer funding when they are classified as an essential business, operating in lockdown. Equally Bagrie complimented those companies not making a claim because they were getting on with business as usual. Speaking to The Country’s Jamie Mackay, he said “the wage subsidy is out there to support businesses that are getting clobbered, that are effectively in lockdown.”

I am not convinced this interpretation is either totally fair or even correct. Both SFF’s Simon Limmer and Alliance’s CEO David Surveyor are clear the wage subsidy is not a company entitlement, but is paid directly to various categories of employees: firstly it maintains standard wage rates at normal processing speeds despite the 30-50% reduction to meet distance requirements, it retains those who would have to have been terminated seasonally, and it is used to pay those who cannot work e.g. because of age,  compromised immunity or family circumstances. . .

Community to the rescue for harvest – Toni Williams:

CharRees Vineyard owners Charlie and Esma Hill put a call out on social media for help to harvest during lockdown.

They were so overwhelmed by community response, including some from Christchurch, they had to turn people away.

The lockdown harvest, approved by Ministry for Primary Industries as essential for food and beverage production, attracted about 20 people from Ashburton and Methven — many who had never harvested grapes before — to put their hands up to help.

The pickers worked alongside family members of the couple and vineyard workers to pick the first of three annual grape harvests. . . 

Red meat exports top $1 billion in March 2020, a first for monthly exports:

The monthly value of New Zealand red meat and co-product exports topped $1 billion for the first time, according to an analysis by the Meat Industry Association (MIA).

Total exports reached $1.1 billion in March 2020, an increase of 12 per cent on March 2019.

While overall exports to China for the month of March were down by nine per cent compared to last March as a result of COVID-19, exports to all other major markets increased, demonstrating the agility and resilience of the New Zealand red meat sector. . . 

Time to take ag reform out of the “too hard basket” – Fiona Simson:

Regional Australia is well placed to be the engine that powers Australia’s COVID-19 recovery. The bush has done this before, with strong exports helping keep recession at bay during the Global Financial Crisis.

And, after a challenging period of drought, bushfires and floods, widespread rainfall has seen the fortunes of farmers begin to improve. Agriculture is ready and raring to grow.

As we dare to cast an eye to the world post-COVID-19, now is the opportune time to consider the changes agriculture and regional Australia needs to best contribute to the recovery task. . . 


Rural round-up

February 2, 2020

ETS legislation will increase costs for kiwis:

DairyNZ General Manager for Responsible Dairy Jenny Cameron is urging Parliament’s Environment Select Committee to carefully consider the implications ETS legislation could have on farms, families and communities and how they manage the impact of the transition to a low-emissions economy.

“We believe that the move to auctioning alongside the removal of the existing price cap is likely to result in a significant expansion to the revenue generated by the ETS and drive up costs” Ms Cameron said.

“The Bill could see emissions prices rise to $50 per tonne, which would mean emissions trading may be adding 14c to each litre of petrol and increasing power bills by up to 20%.

“While New Zealand farmers are not included in the ETS for their biological emissions, they are still included in the ETS for their emissions on things like power and fuel just like the rest of the country. . .

Oamaru Meats flat out – Sally Barker:

Oamaru Meats is flat out processing lambs, having regained its approval to export to China.

The company was shut down in mid-September last year after the Chinese Government suspended its permission to send beef. The situation was caused by beef fat packing that was not up to standard, director Richard Thorp said.

About 140 staff were stood down while Oamaru Meats, owned by China’s BX Foods, worked with New Zealand and Chinese authorities to reinstate the export access. . .

Mum is student winner’s role model :

Lincoln University student Ngahuia Wilson is this year’s Ravensdown Hugh Williams Memorial Scholarship winner.

Her commitment to the agri-sector, academic achievements, innovative thinking and passion shone through, Ravensdown said.

The $5000 scholarship is for Ravensdown shareholders’ sons and daughters studying for agriculture or horticulture degrees.

“It is going to open a lot of new doors and new paths to the things I’m passionate about,” Wilson said. . . 

New markets for new products – Neal Wallace:

Anzco has broadened the products it sells after research made possible by a Primary Growth Partnership. Neal Wallace reveals some of the new products and their uses that come from the carcase of a cattle beast.

Meat company Anzco has commercialised 26 new products as diverse as bones, blood and membranes for humans using research from a seven-year Primary Growth Partnership.

And its FoodPlus programme has identified more than 30 others and has a further eight ingredient and 10 healthcare products under consideration for commercialisation.

The $27 million Primary Growth Partnership is forecast to increase gross domestic product by $200m by 2030 and has increased jobs in the company by 102, many highly skilled and as diverse as advanced processing, technical product development and commercialisation. . . 

What about the potential of goat meat exports?  – Garrick Batten:

Long-time goat industry advocate Garrick Batten questions why NZ meat exporters have not capitalised on the inbuilt and growing Northern American demand for goat meat.

This is despite goat meat’s historically increasing prices. He also asks is why NZ pastoral farmers have not capitalised on the on-farm production advantages to produce that goat meat?

China already has the world’s biggest sheep flock; sheepmeat is well known so NZ product sales – especially mutton – have grown rapidly in recent years.

There are as many goats as sheep in China, all ending up as meat that is interchangeable with sheepmeat in the market. But our Chinese trade never mentions goat meat.  . . 

Tim Hortons pulls Beyond Meat off the menu, saying customers seem to prefer real meat – Michael Lewis:

Tim Hortons has pulled all Beyond Meat plant-based products from its restaurants less than a year after the national rollout, saying that its customers seemed to prefer the “meat option” in their sandwiches.

Under parent Restaurant Brands International Inc., Tim Hortons introduced breakfast sandwiches featuring a plant-based sausage patty in May of last year at nearly 4,000 locations, and then followed up with Beyond Meat burgers in July.

In September, the products were scaled back to Ontario and B.C. only, with the company saying that after some initial excitement, sales slowed as customers seemed to prefer the regular meat products. . . 

 


Rural round-up

July 12, 2019

Rotten reality: Apples still on trees in July a visual reminder of Hawke’s Bay picking struggles :

Fruit hanging on trees well into a cold and frosty Hawke’s Bay winter provides a visual reminder of the struggle growers had finding pickers over the last season.

New Zealand Apples and Pears CEO Alan Pollard said it was the third year in a row a labour shortage had been declared in Hawke’s Bay, and it was time to have a conversation about solving the issue.

“We can’t continue to have an annual conversation which is what we’ve been doing in the past, we’ve got to have much more long-term solutions. . .

Winston Peters wonders why he doesn’t get a thank you from farmers – Hamish Rutherford:

No one provides a defence of the New Zealand Government quite like Deputy Prime Minister Winston Peters.

Over the course of nearly two years in Government, senior Labour Party Ministers have adopted an increasingly conciliatory approach to critics, while, if anything, Peters becomes more cantankerous.  . . .

Sheep and beef on farm inflation reaches 3 percent:

Sheep and beef farm input prices rose twice as fast as consumer price inflation in the year to March 2019 with on-farm inflation at 3.0 percent, according to the latest Beef + Lamb New Zealand (B+LNZ) Economic Service Sheep and Beef On-Farm Inflation Report.

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

B+LNZ Economic Service’s Chief Economist Andrew Burtt says the biggest three expenditure categories – shearing expenses; fertiliser, lime, and seeds; and council rates – contributed substantially to the 3.0 percent rate of on-farm inflation. . .

ANZCO confident no repeat of horror year – Allan Barber:

ANZCO’s 2018 pre-tax loss of $38 million was the worst result in the company’s history. The exporter has traditionally posted a profit, even in difficult years for the meat industry which has always had a chequered history, so it is critical to assess what went wrong and, more important, how to make sure it doesn’t happen again.

None of the largest meat companies that publish their annual results, Silver Fern Farms, Alliance and ANZCO, enjoyed a great year, but contrary to its previous performances relative to its competitors, ANZCO had the worst of it by a considerable margin. Analysis of the figures shows record income more than offset by expenses and finance costs; the obvious questions for CEO Peter Conley are what is going to change and how is 2019 tracking? . . .

Alternative protein startups: let’s get the facts straight about livestock’s carbon footprint – Lauren Manning:

The impact of the meat industry on the environment, particularly relating to greenhouse gas emissions, has become common knowledge among consumers and is increasingly a feature of mainstream media headlines today.

Arguably starting when the Food and Agriculture Organization released a paper entitled Livestock’s Long Shadow in 2006, the anti-meat movement moved on from focusing on concerns about the humane treatment of animals to its environmental footprint. . . 

Inaugural Ground Spread Awards recognise  innovation, skill and excellence:

The inaugural winners of the New Zealand Groundspread Fertilisers Association (NZGFA) awards were announced this week at the organisation’s 63rd annual conference, ‘Technology the Enabler’, in Taupo.

The NZGFA Innovation Award (sponsored by Trucks & Trailers) was presented to Canterbury’s Ron Smith of R&R Haulage Ltd for his detailed research into testing bout widths against product quality. . .


Rural round-up

December 21, 2018

Taratahi agri training operator in interim liquidation – Paul McBeth:

(BusinessDesk) – The Taratahi Agricultural Training Centre has been placed into interim liquidation at the request of its board of trustees as declining student numbers saw its funding drop faster than it could cut costs.

The High Court yesterday appointed David Ruscoe and Russell Moore of Grant Thornton as interim liquidators after the board sought to protect the position of its staff, students, creditors and other stakeholders, the accounting firm said.

Taratahi is a private training establishment, employing 250 staff, and educating 2,850 students this year. It owns and manages eight farms across the country. . . 

IrrigationNZ welcomes new chief executive:

IrrigationNZ has appointed Elizabeth Soal as its new Chief Executive.

“IrrigationNZ has recently adopted a new strategy which focuses on creating an environment for the responsible use of water for food production. As part of the strategy we will be focusing on advocacy, encouraging innovation through sharing ideas and adopting new technology, developing a robust information base, bringing the irrigation sector, researchers and decision makers together to make better decisions for our future and creating world‑leading irrigation standards,” says Nicky Hyslop, IrrigationNZ Board Chair.

“Elizabeth has a strong background in water management, law and policy and she will help contribute to all of these goals but she is particularly well qualified to contribute to national discussions as we seek to achieve solutions to complex issues around water allocation which result in good outcomes for both communities and the environment.” . . 

Feds welcome new IrrigationNZ chief executive:

Federated Farmers welcomes Elizabeth Soal as the new chief executive of Irrigation New Zealand.

Federated Farmers maintains an excellent working relationship with Irrigation New Zealand,” Feds water and environment spokesperson Chris Allen says.

Elizabeth has the credentials and background, including her strategy and policy work for the Waitaki Irrigators Collective, to help ensure INZ continues its excellent work.” . .

Federated Farmers disputes E Coli claims – Eric Frykberg:

There is no proof that E. Coli found in three Canterbury rivers came from cows, according to Federated Farmers.

Research commissioned by Fish and Game found dangerous pathogens in three Canterbury rivers – the Ashley, Selwyn and Rangitata.

Fish and Game insisted the cause was leaching from dairy farms.

But Federated Farmers water spokesperson Chris Allen said the problem could be caused by wildlife, or human activity, as well as from animals. . . 

Research suggests we should take a harder look at the benefits of organic foods – Point of Order:

The Green Party’s food policy may need revisiting, in the light of research published in the past week.

The policy was introduced in May 2017 by Green Party MP Mojo Mathers, who lost her list place in Parliament at the general election.

How we produce, distribute and consume food is of critical importance to growing resilient healthy communities, minimising our ecological footprint and maintaining a
stable economy, she said.  That’s why food policy lies at the heart of Green policy. . . 

Reflections on the year that was – Allan Barber:

From a New Zealand domestic perspective the attempt to eradicate Mycoplasma Bovis has had the biggest impact on farming, most of it focused on the relatively small number of properties forced to cull their entire herd, some of it directed at those properties under surveillance or Notice of Direction, and some of it on the agricultural service industry, including meat processors, cartage contractors, stock agents and saleyards, as well as calf clubs and A&P shows.

MPI is cautiously optimistic the disease can be eradicated which would be the first time any country has achieved such an outcome. However there is still plenty of water to flow under the bridge before anyone can say with confidence that the hitherto impossible has been achieved. 2019 will almost certainly be the year we know for certain, one way or the other. . . 

Guy Trafford finishes 2018 with a GDT review, news of a new Fish & Game river survey, calling out plant-based-milk, and an update on the MPB eradication – Guy Trafford:

An ever so slight increase in the Global Dairy Trade price for whole milk powder with a +0.3% lift. It may not put much of a smile on farmers faces but at least it is a not a drop.

Overall the GDT went up by +1.7% with both butter and cheddar making gains with lifts of +4.9% and +2.2% respectively so not such a poor result. With this now being the second – be they small – lift in a row and we have to go back almost 12 months before we had a repeat of two consecutive sales lifting. Dairy Futures had predicted a higher 3% lift in WMP for this period and with volumes sold down 0.7% on the previous sale, which was also down, the remainder of the season still looks precarious. The next sale is on the 2nd of January 2019. . . 

New captain for 2019 Meat Blacks:

One of the final jobs of 2018 is to take a look at the 2019 Meat Blacks team that will lead the sector next year.

There haven’t been too many adjustments to make, though the sector has had a couple of big retirements from the leadership, lock Sir Graeme Harrison (ANZCO) and number eight James Parsons (B+LNZ Ltd) have departed this year. Linesman Martyn Dunne also retired from MPI and has been replaced by Ray Smith, fresh from Corrections (Ed: appropriately!).

As a result, we have a new captain Murray Taggart (Alliance), promoted from vice-captain, and new vice-captain Tony Egan (Greenlea Premier Meats) to lead the team. . . 

T&G Global profit dented by cheaper tomatoes, small grape harvest  – Paul McBeth:

(BusinessDesk) – T&G Global says its annual profit will more than halve this year after cheaper tomatoes and a weather-affected grape harvest in Peru dented earnings.

Net profit will be $8-10 million this calendar year, down from $22.6 million in 2017, it said in a statement.

Lower tomato prices affected T&G’s covered crops unit while its Peru grapes division dealt with a smaller harvest, it said. . .


Rural round-up

September 22, 2018

Changes on the farm are improving water efficiency:

A water tax isn’t workable – but changes on the farm are improving water efficiency

IrrigationNZ says that introducing a nationwide water tax is not workable, and that allowing irrigators to continue to invest in more modern irrigation systems rather than taxing them will result in the biggest improvements in water use efficiency.

“A water tax has been considered in other countries internationally but in every case it has been abandoned. Other countries have found it too complex and expensive to design a fair water tax which can be easily implemented without resulting in adverse outcomes,” says IrrigationNZ Chief Executive Andrew Curtis. . .

1080 drop to go ahead after failed legal bid :

A conservation group has failed in its legal bid to stop a 1080 drop in the Hunua Ranges near Auckland.

The Friends of Sherwood Trust won a temporary injunction in the Environment Court halting the major pest control programme two weeks ago.

It argued that the drop breached the Resource Management Act which prohibits the dropping of substances in beds of lakes and rivers.

However today the court refused the Trust’s bid to further halt the drop.

“We are not persuaded that there is likely to be serious harm to the environment if the proposed application proceeds.” . .

Plans for huge tahr cull upset Otago hunters – Simon Hartley:

A sweeping cull of at least 17,500 Himalayan mountain tahr proposed by the Minister of Conservation, Eugenie Sage, has outraged some recreational hunters in Otago.

Ms Sage’s sudden announcement of the high killing ratio may yet be challenged in court.

Killing of the tahr, which are related to goats and were introduced here in 1904, is to start within two weeks.

Ms Sage is proposing the Department of Conservation kill 10,000 animals in various areas in the Southern Alps over the next eight months because the animal’s estimated 35,000 population was “three times” that permitted by the long established Himalayan Tahr Control Plan. . .

Meat firms need more staff – Chris Tobin:

South Canterbury meat companies are so desperate for workers to start the new killing season they are recruiting overseas.

Immigration NZ has approved work visas for 24 migrant employees to work at Alliance Smithfield this season.

Figures released to The Courier by the Ministry of Business Innovation and Employment (MBIE) show Immigration NZ has also allowed Silver Fern Farms to employ 49 overseas workers in Canterbury, although the information did not specify what the break-down figures between the company’s two plants at Pareora and Belfast, Christchurch, were.

Work visas for 18 overseas workers for Anzco Foods at Ashburton have also been approved. . .

New Everyday FarmIQ pack targets mainstream dairy and livestock farmers.

A new range of software subscriptions from FarmIQ address the growing information needs of New Zealand dairy and livestock industry.

With a clear focus on the information needs of dairy and livestock farmers, the new packs will help mainstream New Zealand farmers run more productive and sustainable operations.

Darryn Pegram, FarmIQ Chief Executive Officer, said subscriptions start at $55 a month for the new “Everyday FarmIQ” software pack, delivering a broad suite of recording and reporting tools. . .

 ‘High-yield’ farming costs the environment less than previously thought – and could help spare habitats -“

New findings suggest that more intensive agriculture might be the “least bad” option for feeding the world while saving its species – provided use of such “land-efficient” systems prevents further conversion of wilderness to farmland.

Agriculture that appears to be more eco-friendly but uses more land may actually have greater environmental costs per unit of food than “high-yield” farming that uses less land, a new study has found.

There is mounting evidence that the best way to meet rising food demand while conserving biodiversity is to wring as much food as sustainably possible from the land we do farm, so that more natural habitats can be “spared the plough”. . . .


Rural round-up

June 17, 2018

Infected cattle bring opportunity for study – Sally Rae:

It will not be possible to control Mycoplasma bovis if an eradication attempt fails, given the present lack of understanding of the infection and the “gross inadequacy” of existing diagnostics, Emeritus Prof Frank Griffin says.

Otago-based Prof Griffin, whose career has focused on animal health research, described that as the “sad reality”.

He believed the Government’s decision to attempt eradication first was the correct one, even though it brought considerable public liability for taxpayer funding. . .

TB work will help fight M. Bovis:

Eradication of Mycoplasma bovis could be supported by the 25-year legacy of co-operation between OSPRI/TBfree and AgResearch in tracking and researching bovine tuberculosis.  Richard Rennie spoke to Dr Neil Wedlock, one of the country’s senior bTB researchers on what can be learned.

Collaboration between AgResearch scientists and disease control managers at OSPRI TBfree and its predecessor the Animal Health Board has led to important technical breakthroughs resulting in a drastic reduction in the prevalence of bovine tuberculosis in livestock.

Eradication of TB from the national herd by 2026 will be hailed as a disease control success story but there are some challenges to deal with before that happens. . . .

Trio share their travels through hills and valleys – Toni Williams:

You can’t go from mountain to the next mountain without going in the valley,” says farmer and author Doug Avery.

Mr Avery, along with Paul ”Pup” Chamberlain and Struan Duthie, was guest speaker at a Rural Support Mid Canterbury session at the Mt Somers Rugby Club rooms.

Rural Mid Cantabrians were encouraged to ”take a break” with the trio as they spoke of their life experiences – the ups and the downs.

From front-line policing during the 1981 Springbok tour, reaching rock bottom farming in drought-stricken Marlborough to cracking open emotions, they shared it all.

All three spoke of the importance of having a mentor, or a support network of people to help when times were tough. . .

Pure taste sours :

Meat companies have asked Beef + Lamb New Zealand not to launch the Taste Pure Nature origin brand in North America fearing it will confuse consumers and give competitors a free ride.

The Lamb Company, a partnership between the country’s three largest lamb exporters Alliance, Anzco and Silver Fern Farms, has spent 54 years jointly developing the North American market.

Its chairman Trevor Burt fears the origin brand will clash with its Spring Lamb brand. . .

Climate change discussion ‘direction of travel’ is positive – Feds:

The National Party’s five principles on which it will base emission reduction policies, including science-based and taking into account economic impact, are spot on, Federated Farmers says.

The Opposition’s support for a bi-partisan approach to establishing an independent, non-political Climate Change Commission was outlined by Leader Simon Bridges in a speech at Fieldays this morning.  National’s three other emission reduction criteria are technology driven, long-term incentives and global response.

“We’re delighted that the Coalition Government, and now National, have both signaled their recognition that there’s a good case for treating short-lived greenhouse gases (such as methane) and long-lived (carbon dioxide and nitrous oxide) differently,” Katie says. . .

Different treatment of methane the right thing for global warming:

The Dairy Companies Association of New Zealand (DCANZ) is pleased to see a differentiated approach, to treat methane differently to long-lived greenhouse gases, being given serious consideration in New Zealand’s climate change policy dialogue.

“Policy must be underpinned by robust science and be appropriate to the targeted outcome. If the outcome we want is climate stabilisation, then the science is telling us to treat long-lived gases differently to methane in policy frameworks” says DCANZ Executive Director Kimberly Crewther . . .

This generation of women not just farm wives anymore – Colleen Kottke:

For many generations, the heads of farm operations across America were likely to be men clad in overalls wearing a cap emblazoned with the logo of a local seed dealership or cooperative.

Back then, most women were viewed as homemakers who raised the children, kept the family fed and clothed, and were delegated as the indispensable “go-fer” who ran for spare parts, delivered meals out to the field and kept watch over sows during farrowing – all the while keeping hearth and home running efficiently

Although many of these duties were important to the success of the farm, they were often looked upon as secondary in nature. Today women are stepping into the forefront and playing more prominent roles on the farm and in careers in the agribusiness industry once dominated by their male counterparts. . .


Rural round-up

June 13, 2018

New faces take on arable roles – Annette Scott:

Wairarapa cropping farmer Karen Williams made history as she took up the reins of the Federated Farmers arable section at its annual conference.

The first woman to head the section, the 2017 biosecurity farmer of the year and former Ballance Farm Environment Award winner takes on the job with a bundle of enthusiasm.

“I am excited about the opportunity. 

“For me this role gives me the opportunity to continue to work in biosecurity and engage in that space in Wellington. . . 

Drones prove worth on farms – Richard Rennie:

Drones initially welcomed as great novelties are now fixtures as business tools and on farms they can have multiple uses. Richard Rennie talked to farmers who have used them and found a new drone firm setting up shop here as their use becomes more widely accepted.

IN THE heady early days of drone deployment many promises were made about how they would revolutionise some of the grinding daily farm jobs, often all from the comfort of the farm kitchen table. 

A few years on they have proved to be more than a flash in the pan. 

For some farmers they are now an established tool but still as dependent on the technology they take into the sky as the inventiveness of farmers using them. . . 

Meat company results only average for 2017 – will 2018 be any better?  – Allan Barber:

ANZCO’s lacklustre result for 2017, posted last month, concludes the financial reporting for last year by the three major processors which publish their results. ANZCO’s pre-tax profit was $1.8 million which compares disappointingly with Alliance Group’s $16.7 million profit and Silver Fern Farms Cooperative’s 15 month profit of $7.8 million.

None of the three companies achieved a particularly good return on their investment in the business, but both Alliance and SFF showed improvement on the previous year which was in each case the result of substantial changes in the business structure and balance sheet. The $261 million investment by Shanghai Maling in acquiring 50% of SFF had an immediately positive impact on the company’s balance sheet strength and interest bill. During its year to September Alliance was able to reduce debt and make increased investment in plant upgrades at the same time. . . 

Danone adds to investment in NZ infant formula with proposal to buy up to 49% of Yashili New Zealand – Jonathan Underhill

(BusinessDesk) – Danone plans to increase its investment in New Zealand infant formula manufacturing by acquiring up to 49 percent of Yashili New Zealand Dairy Co, the local unit of China Mengniu Dairy, according to a filing in Hong Kong.

Terms of the transaction haven’t been finalised, including the price and method of payment, Yashili International said in a statement to the Hong Kong stock exchange. “The consideration, the payment method and the payment schedule shall be determined after arm’s length negotiations and mutual agreement between the parties,” it said in a statement to the Hong Kong stock exchange. . .

Changes on board of Young farmers – Sally Rae:

Experienced Dunedin marketer Sharon Angus has joined the board of New Zealand Young Farmers as an appointed director.

Ms Angus (54), who is former general manager of marketing at Silver Fern Farms, has extensive experience with food brands.

The marketing consultant was excited about joining the board as she felt New Zealand Young Farmers “represents the future”. . . 

Process vegetables industry signs up to GIA:

Today, Horticulture New Zealand signed a Government Industry Agreement (GIA) for Biosecurity Readiness and Response on behalf of Process Vegetables New Zealand (PVNZ).

PVNZ chair David Hadfield says robust biosecurity should be seen as an investment for growers.

“Committing to the GIA enables us to have closer, more informed interactions with the Ministry for Primary Industries (MPI) and other GIA industry partners around biosecurity. This includes planning for potential incursions and taking a leading role in collective biosecurity management where it impacts our members,” Hadfield says. . . 

Knitted with love:

How Fonterra is helping keep Gore’s newest residents warm and cosy this winter.

It’s a rainy Wednesday afternoon in Gore and Lois Shallard’s knitting needles are working over-time. Beside her on the table is a pile of tiny knitted baby socks, singlets and hats and at her feet are balls of wool – hot pink, lime green, lavender and a “lovely mottled blue”.

Lois is 70 this year and she’s been knitting since her teens. She knitted clothes for all her children back in the day and now she’s moved on to knitting for her town’s new mums.

“I love knitting the little socks the best, they are just so tiny and cute.” . . 


Rural round-up

February 5, 2018

Markets in danger – Annette Scott:

New Zealand is at risk of causing global market jitters if its biosecurity doesn’t stand up to international scrutiny, Anzco livestock and agribusiness general manager Grant Bunting says.

Lack of accountability, farmer confusion, inadequate animal traceability and too many pushing their own agendas were key factors contributing to a situation with potential to end in disaster for the meat industry. 

Bunting called for accountability and was not alone.

“There are wider industry stakeholders and other processing facilities that share the same concern.”

While Mycoplasma bovis and the Ministry for Primary Industries response was clearly the topic of the moment, the National Animal Identification and Tracing (NAIT) programme had much to answer. . . 

Camp vision brought to life – Tracey Roxburgh:

Almost four years to the day after United States philanthropists Debbi and Paul Brainerd bought a 1.6ha site in Glenorchy, the doors will officially open on their pioneering Camp Glenorchy project, which will be the most sustainable camping ground in the southern hemisphere, if not the world. Queenstown reporter Tracey Roxburgh got a behind-the-scenes tour to see how the project at the head of the lake is progressing.

It’s one thing to take a tour of a building site crawling with contractors erecting frames, digging holes and assembling roofs, and hear about what it will eventually look like — it’s quite another to go back 12 months later and see the vision brought to life.

In March 2014 Debbi and Paul Brainerd, United States-based philanthropists, bought the 1.6ha  Glenorchy Holiday Park and then  four surrounding properties which now comprise the “Glenorchy Marketplace Project”.

It will open to the public in March. In December  the first certificate of public use certificates were issued by the Queenstown Lakes District Council for five of the camp’s cabins ahead of the first guests arriving on December 20 — part of a “soft opening” to test everything and make sure it was up to scratch.  . . 

Greater penalties for stock thieves:

A Bill designed to deter livestock theft will be introduced to Parliament today under the name of National MP Ian McKelvie.

Mr McKelvie says his Bill intends to introduce stricter measures for sentencing judges to draw on when sentencing thieves caught stock rustling.

“The current law offers no deterrent and the penalties don’t reflect the gravity of the crime or the likely suffering of an animal being slaughtered by a rank amateur. . . 

Second Highest Karaka Yearling Sale result:

The National Yearling Sales has recorded its second highest turnover in its 91 year history.

Over 900 horses were sold at Karaka for a combined aggregate of $97,017,750, smashing last years total of $82,015,500.

The highest combined aggregate was reached in 2008 when $111,148,850 was spent at the iconic New Zealand Sale. . . 

Can Australia’s feedlots compete? -John Carter:

It is invariably said that most of a beast’s breeding goes down its neck. A tour of a feedlot, beginning at the inception pens, confirms the saying. “Genetics” improves with the days on feed. 

Good nutrition is essential in producing good meat. However, Australia is heavily handicapped in the world’s food production race.

Ours is, in general, a tired, burnt out, continent with soil poisoned by our eucalyptus trees. 

Our city-centric governments have allowed developers to cover some of our most productive land with concrete. . . 

 

French seed group says GMO protests could force R&D relocation:

Limagrain, the world’s fourth-largest seed maker, will consider moving its research activities out of France if field trials in its home market continue to be sabotaged by opponents of genetically modified crops.

The French cooperative group was targeted last month by protestors who invaded test fields southeast of Paris and scattered non-commercial seed. That was the latest in a series of actions by opponents of gene-editing technology, which they say will herald a new generation of genetically modified organisms (GMOs).

Limagrain said the incident ruined a 37-hectare trial of wheat based on conventional breeding and showed the risk of a repeat of virulent debate over GMOs. . . 

It’s all aobut inches in farming life and football – Andrew Osmond:

Do you ever wonder what NFL football coaches say to their players during a big game? That’s the challenge for Bill Belichick of the New England Patriots and Doug Pederson of the Philadelphia Eagles, the men whose teams will compete this Sunday in the Super Bowl.

Perhaps they’ll turn to the words of a fictional counterpart. In the 1999 movie “Any Given Sunday,” veteran Coach Tony D’Amato [Al Pacino] delivers one of the greatest inspirational sports speeches, ever.

Pacino challenges his team to win the game “inch by inch, play by play.”

This is a football speech, in a locker room, at half time.  For me, it’s also a speech about farming. And life.

Please hear me out on this and let me explain, the idea’s not as strange as it sounds.

Pacino’s character begins by calling the game “the biggest battle of our professional lives.” Then he makes an almost philosophical point: “You find out life’s this game of inches.”

The same is true for farming. . . 

 


Rural round-up

August 16, 2017

Paying for water should be a consistent policy:

A consistent policy on water for everyone is required, says BusinessNZ.

An ad hoc policy on water charging would be prone to political manipulation, with regions, councils and businesses all lobbying for favourable royalty regimes, BusinessNZ Chief Executive Kirk Hope said.

“Business needs an agreed, consistent water policy that applies to all water users and where rights to use water are tradable, fairly apportioned and can be known in advance.

“It would not be helpful for business to have to operate and make investment decisions in an environment where the cost of water is determined on an ad hoc, changing basis. . . 

Unwanted, Unknown, Unnecessary – Labour’s New Water Tax on Auckland’s Rural Northwest:

The water tax recently proposed by Labour would deliver a sharp blow to the economy of Auckland’s rural northwest, says National’s candidate for Helensville, Chris Penk.

“It’s unwanted because farmers, horticulturalists and viticulturists provide a significant number of jobs in the region … and slapping them with a water tax would completely undermine this growth. And the inevitable price rises for consumers would hardly be welcome either.”

“It’s unknown because Labour aren’t saying what they’d actually charge. There’s almost no detail associated with the threatened tax, even on such key aspects as how much it’d be and where the money would go.” . . 

The realities of Mycoplasma bovis – Keith Woodford:

The recent outbreak of Mycoplasma bovis in South Canterbury has come as a shock to all dairy farmers. It is a disease that most New Zealand farmers had never heard of.

Regardless of whether or not the current outbreak can be contained, and the disease then eradicated, the ongoing risks from Mycoplasma bovis are going to have a big effect on the New Zealand dairy industry.

If the disease is contained and eradicated, then the industry and governmental authorities will need to work out better systems to prevent re-entry from overseas. And if the disease is not eradicated, then every farmer will have to implement new on-farm management strategies to minimise the effects. . . 

Slowing supply growth to impact NZ dairy supply chain – new industry report:

New Zealand dairy processors will struggle to fill existing and planned capacity in coming years as milk supply growth slows, leading to more cautious investment in capacity over the next five years, according to a new report from Rabobank.

The report Survive or Thrive – the Future of New Zealand Dairy 2017-2022 explains that capital expenditure in new processing assets stepped up between 2013 and 2015, but capacity construction has run ahead of recent milk supply growth and appears to factor in stronger milk supply growth than what Rabobank anticipates.

Rabobank dairy analyst Emma Higgins says milk supply has stumbled over the past couple of production seasons and, while the 2017/18 season is likely to bring a spike in milk production of two to three per cent, Rabobank expects the brakes to be applied and milk production growth to slow to or below two per cent for the following four years. . . 

Synlait Milk says US approval for ‘grass-fed’ infant formula will take longer –  Tina Morrison:

(BusinessDesk) – Synlait Milk, the NZX-listed milk processor, said regulatory approval for its ‘grass-fed’ infant formula in the US is taking longer than expected.

Rakaia-based Synlait is seeking approval from the US Food and Drug Administration for its ‘grass-fed’ infant formula to be sold in the world’s largest economy ahead of a launch of the product with US partner Munchkin Inc. The companies said in a statement today that the FDA process, which had been expected to be completed this year, is now expected to take a further four to 12 months. The stringent process, known as a New Infant Formula Notification (NIFN), includes a range of trials, audits and documentation. . . 

New Zealand’s beef cattle herd continues to grow:

Beef + Lamb New Zealand says that during the past year, New Zealand’s beef cattle herd increased by 2.8 per cent – to 3.6 million head – while the decline in the sheep flock slowed sharply as sheep numbers recovered in key regions after drought and other challenges.

The annual stock number survey conducted by Beef + Lamb New Zealand’s (B+LNZ) Economic Service highlights the continued growth in beef production, as farmers move towards livestock that are less labour-intensive and currently more profitable. . . 

Grad vets encouraged to apply for funding:

Associate Minister for Primary Industries Louise Upston is encouraging graduate vets working in rural areas to apply for funding through the Vet Bonding Scheme.

Since the Scheme was launched in 2009, 227 graduates vets have helped address the ongoing shortages of vets working with production animals in rural areas of New Zealand.

“The 2014 People Powered report told us that by 2025, we need 33,300 more workers with qualifications providing support services, such as veterinary services, to the primary industries,” says Ms Upston. . . .

Production and profit gains catalyst for joining programme:

The opportunity to look at their farm system and strive to make production and profit gains was what spurred Alfredton farmers, James and Kate McKay, to become involved in the Red Meat Profit Partnership (RMPP).

RMPP is a seven year Primary Growth Partnership programme aimed at driving sustainable productivity improvements in the sheep and beef sector to deliver higher on-farm profitability.

Encouraged by their ANZCO livestock rep, Ed Wallace, James and Kate joined the programme in 2015 and have had the opportunity to look at some key aspects of their farming system. This has included sitting down with local BakerAg consultant, Richmond Beetham, who has helped the McKays look at their ultimate goal of mating a 50kg hogget. Increasing weaning weights and looking to diversify their forages has also been a goal for the McKays. . . 

Fonterra Dairy Duo Claim Awards at Top International Cheese Show:

Two Fonterra NZMP cheeses have scooped silver awards at the prestigious international Cheese Awards held recently at Nantwich, UK.

One of the most important events in the global cheese calendar, the International Cheese Awards attracted a record 5,685 entries in categories that ranged from traditional farmhouse to speciality Scandinavian. Cheeses from the smallest boutiques to the largest cheese brands in the world vied for top honours in the Awards, now in their 120th year of competition. . . 

Dairy farmers spend over $1b on the environment:

Federated Farmers and DairyNZ have conducted a survey on New Zealand dairy farmers’ environmental investments, revealing an estimated spend of over $1billion over the past five years.

Five percent of the nation’s dairy farmers responded to the survey and reported on the environmental initiatives they had invested in such as effluent management, stock exclusion, riparian planting, upgrading systems and investing in technology, retiring land and developing wetlands. 

“It is encouraging to see the significant investments farmers are putting into protecting and improving the environment,” says Andrew Hoggard, Federated Farmers Dairy Chair. . . 

Criticism of farming gas emissions tells only half the story  – Paul Studholme:

It is imperative that political decisions on reacting to climate change are based on science, writes Waimate farmer Paul Studholme.

I write because of frustration with the sweeping generalisations and half-truths critical of the farming industry in this country that are presented by the mainstream media and environmental groups as facts.

One in particular, repeated frequently, is this: Farming produces more than half the greenhouse gases in New Zealand. This is only telling half the story or one side of the equation.

What is referred to here are the gases methane and carbon dioxide emitted by cattle and sheep. This is part of the carbon cycle. . .


Rural round-up

April 2, 2015

MIE plan stimulates debate but won’t fix the problem – Allan Barber:

The Pathways to Long-Term Sustainability document launched earlier this month makes some very valid points about the red meat industry’s shortcomings, but its recommendations are almost certainly impossible to implement.

Even if the processors are willing to consider capacity rationalisation, it won’t be on the scale envisaged by the GHD consultants and judging by Sir Graeme Harrison’s remarks ANZCO won’t be part of it; nor will AFFCO unless the Talleys undergo a St Paul like conversion on the road to Motueka. This leaves the cooperatives, with Rob Hewett prepared to consider merging with Alliance, although he isn’t holding his breath, while Murray Taggart remains very lukewarm.

The common theme evident from all the company chairmen is the fundamental need for any solution to be commercially justifiable from the companies’ perspective. The problem with this particular stance is the conflict with the farmer bias of MIE’s proposals. . .

Wine and Spirit geographical registration coming:

Trade Minister Tim Groser and Commerce and Consumer Affairs Minister Paul Goldsmith today announced that Government will implement the Geographical Indications (Wine and Spirits) Registration Act.

“The Act will set up a registration regime for wine and spirit geographical indications, similar to the trademark registration regime,” Mr Groser says.

A geographical indication shows that a product comes from a specific geographical region and has special qualities or a reputation due to that origin.  Well known products that are identified by geographical indications include Champagne, Scotch Whisky and Prosciutto de Parma.

The use of geographical indications by New Zealand producers is largely confined to the wine industry. . .

Implementation of Act is a big step forward for the New Zealand wine industry:

New Zealand Winegrowers warmly welcomes the announcement that Government will implement the Geographical Indications Registration Act.

Geographical indications identify wines as originating in a region or locality says Philip Gregan, CEO, New Zealand Winegrowers. The Act will set up a registration system for wine geographical indications, similar to the trademark registration system. . .

 

$7.8m for new sustainable farming projects:

29 new projects have been approved for $7.8 million in new funding over four years through the Sustainable Farming Fund (SFF), Primary Industries Minister Nathan Guy has announced today.

“These are grass-roots projects that support farmers, growers and foresters to tackle shared problems and develop new opportunities. They will deliver real economic, environmental and social benefits.

“For example, one project will develop industry tools for farmers to improve their farm practices to improve water quality and infrastructure, while reducing nutrient loss. . .

Forestry projects identify practical solutions:

New Zealand’s forestry sector will benefit from five new projects in the latest round of the Sustainable Farming Fund (SFF), Associate Primary Industries Minister Jo Goodhew announced today.

“Around $1.2 million has been committed over four financial years towards five new SFF projects involving the forestry sector,” Ms Goodhew says.  “SFF continues to be a great example of government supporting foresters to ensure the sustainability of our primary industries.”

The forestry projects are part of the 29 new SFF projects announced today—following the 2015/16 SFF funding round held last year. . .

New OSPRI Chief Executive appointed:

OSPRI Chairman Jeff Grant has today announced the appointment of Michelle Edge as Chief Executive of OSPRI.

Ms Edge brings a wealth of agricultural industry experience to the position having had an extensive career spanning scientific research, government regulation, policy and industry organisations within the Australian agricultural sector.

She was most recently Chief Executive of Australian Meat Processor Corporation – a levy-funded research, development and extension organisation operating in the red meat sector. . .

IrrigationNZ welcomes OVERSEER 6.2 despite forecast Nitrate loss spike:

IrrigationNZ says any short-term pain for irrigating farmers who end up with worse nitrate leaching results in OVERSEER 6.2 will be out-weighed by the benefits of more realistic irrigation modelling.

To prevent issues arising from OVERSEER 6.2’s introduction, IrrigationNZ and OVERSEER’s General Manager Dr Caroline Read have been working to inform affected regional councils to reduce compliance concerns. The industry body says irrigating farmers also need to be proactive and familiarise themselves with the new software.

The latest version of OVERSEER® Nutrient budgets (OVERSEER 6.2) launches later this month and IrrigationNZ says some irrigators will see increased nitrate loss estimates for their properties due to more accurate modelling. This may impact on their compliance under regional council regulations. . .

Nitrogen dollars dissolving in thin air:

Millions of dollars’ worth of nitrogen is vanishing into thin air, causing losses to farmers and to New Zealand in wasted import dollars.

That’s the conclusion reached in field trials completed as part of the Ballance Agri-Nutrients’ Clearview Innovations Primary Growth Partnership programme to measure ammonia losses from standard urea and urea treated with a nitrogen stabiliser. These losses occur when the nitrogen in the urea volatilises into ammonia.

While farmers try to avoid the loss by applying urea when wet weather is forecast, research by Landcare Research and Ballance has shown a good 5 to 10 mm of rain is needed within eight hours of application to reduce ammonia loss – a finding consistent with research in New Zealand in the 1980s. . .


Rural round-up

March 21, 2015

TPP Opportunity for Dairy Must Not Be Missed:

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

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

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

Record beef returns offset impact of a dry season:

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

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

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

– Allan Barber:

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

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

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

Meat Industry cautious on new report:

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

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

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

Plant a tree for International Forest Day:

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

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

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

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

21 March International Day of Forests:

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

 

Kiwifruit Industry Strategy Project on track for record turnout:

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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


Rural round-up

March 6, 2015

World dairy prices and New Zealand droughts – Jim Rose:

Here is an image from the recent Westpac Economic Overview. As New Zealand is the world’s largest exporter of dairy products any disruption in the supply from New Zealand can impact on the global dairy prices.

The last few droughts saw world dairy prices increase considerably as milk supply from the rest of the world was unable to adjust to market conditions.

However supply capacity in the US and the EU has increased and with Russia’s import ban there is a much greater supply on the global market. Nevertheless, this doesn’t disprove the possibility that prices rise when supply falls short. The overall signs are that supply and demand are coming into line as Chinese buyers run down stocks.

The drought in New Zealand will further boost prices from current low levels. Westpac expect the milk price to rise to $6.40/kg for the next season. Below is a useful video…

ANZCO’s profit disclosed in Itoham’s statement – Allan Barber:

Japanese food company Itoham Foods announced last week an increase in its shareholding in New Zealand meat processor and exporter ANZCO Foods from 48.28% to 65%. As a result of the transaction it will be able to consolidate ANZCO’s revenues and earnings into its annual accounts.

 $40 million worth of shares are being bought from three entities: another leading Japanese food manufacturer Nippon Suisan Kaisha, chairman Graeme Harrison, and JANZ Investments, owned by Graeme Harrison and ANZCO staff members. The sale will see the minority shareholders reducing their shareholdings on a pro rata basis with Harrison’s effective holding falling from approximately 20% to 14%. . .

BOP Dairy Awards Boosts Careers:

Entering the Bay of Plenty Dairy Industry Awards has helped the region’s 2015 Sharemilker/Equity Farmers of the Year, Grant and Karley Thomson, secure a new position beginning in June.

The couple were the major winners at the 2015 Bay of Plenty Dairy Industry Awards held at the Awakeri Events Centre in Whakatane last night. The other big winners were Jodie Mexted, the Bay of Plenty Farm Manager of the Year, and Jeff White, the region’s Dairy Trainee of the Year.

The Thomsons, who won $10,100 in prizes, are currently 50% sharemilking (with a silent partner) 420 cows for Tom and Tony Trafford at Opotiki. . .

 

New Zealand King Salmon Success to Feature at Queenstown Agribusiness Symposium:

Aquaculture business, New Zealand King Salmon, will feature as one of the success stories at the second Queenstown Agribusiness Symposium this month.

New Zealand King Salmon successfully launched Ōra King premium salmon in 2012 to the international foodservice market.

The farmed salmon is now on fine dining menus around the globe.

The Queenstown Agribusiness Symposium attracts senior staff, managers and leaders from throughout Asia Pacific horticulture, agriculture, seafood and biotech industries to help them develop new ways to problem solve and grow their business. . .

Prime Minister John Key Visits Manuka Health’s New State of the Art Honey Facility:

New Zealand Prime Minister, John Key, has been given a tour of Manuka Health’s brand new multi-million dollar, purpose-built honey processing and distribution centre on a recent visit to Te Awamutu in the Waikato.

Mr Key was shown through the premises by Manuka Health CEO and founder, Kerry Paul. It is now the largest customised honey facility in New Zealand and combines internationally accredited laboratories, honey-drum storage, blending, packing and distribution under one roof.

Mr Paul, says it was a huge honour to have the Rt Hon John Key visit the new centre. . .

Tasman Young Farmers to be put to the test in ANZ Young Farmer Contest Regional Final:

The third ANZ Young Farmer Contest Grand Finalist will be determined next weekend, Saturday 14 March at the Tasman Regional Final held in Kirwee.

“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

August 21, 2014

Increases for fish stocks show success of QMS:

Primary Industries Minister Nathan Guy has announced increases to catch limits for a range of New Zealand fisheries today, thanks to healthy stock levels.

“This shows the success of our world-leading Quota Management System (QMS). It is flexible and driven by science, which means that we can increase take as stock levels improve,” Mr Guy says.

Healthy stocks have led to increased Total Allowable Catch (TAC) limits for:

• Hoki 1 (10,100 extra tonnes across New Zealand)
• Orange Roughy 7A (1155 extra tonnes on the upper West Coast)
• Orange Roughy 3B (525 extra tonnes around the lower South Island) . . .

Just what the doctor ordered, no way or only a matter of time? – Allan Barber:

There are three possible responses to the prospect of an overseas, probably Chinese, investor buying seriously into the New Zealand meat industry: bring it on, not on your life or it’s inevitable.

So far Chinese interests have recently bought a minority stake in Blue Sky Meats and an application to buy Prime Range Meats is with the Overseas Investment Office; ANZCO is just under 75% Japanese owned with New Zealand management and staff holding the balance. ANZCO’s ownership structure has remained like this for over 25 years bringing positive benefits to the company, its suppliers and New Zealand as a whole. . . .

Back to the future? – Andrew Hoggard:

I am going to propose something provocative.  The big long term issue for us isn’t going to be water but will be employment and occupational health and safety. 

While the mention of water and farming gets some people worked up, the truth will eventually break through the spin and I think we are just starting to see this.  When it comes to employment matters though, our industries have been named by the government’s Worksafe NZ as the most dangerous.  Another part of government says a big minority of employers aren’t meeting basic employment law obligations.

If that’s not enough, we’re fully in the crosshairs of the Council of Trade Unions too. . .

It’s a super trim season yes, but milk and disaster, no – Chris Lewis:

Do you know that in the first half of 2014, the amount of global tradable milk grew by an amazing seven billion litres.  That’s enough milk to fill 2,800 extra Olympic sized swimming pools and it was available for export.  It goes to explain why Fonterra cut this season’s forecast payout by a $1 per kilogram of milksolids (kg/MS).

It would be nice if our politicians realised that farmers have good and bad seasons but they don’t.  All the spending promises seem to assume we’re constantly swimming in greenbacks.  We aren’t.  It is also why anyone, whether a Kiwi or a foreigner, who looks at a farm like a get rich quick property scheme will likely end up come a cropper. 

A farm is your business and your home.  This is why farmers are passionate about what we do and that makes us go the extra mile.  It is why I take exception to the line ‘milk and disaster’ being applied to dairy.  It is super trim season yes, but milk and disaster, no. It is great to see the latest GlobalDairyTrade average still in the US$3,000 a metric ton range but that slight 0.6 percent fall means we are on exactly US$3,000. . .

 High pin bones too prevalent in NZ – Yvonne O’Hara:

New Zealand has a rump angle problem, says Holstein Friesian classifier Denis Aitken.

As well as being a dairy farmer who is trying to retire, Mr Aitken, of Maungatua, is a member of the World Holstein Friesian Federation Type Harmonisation working group. He spent some time in Denmark attending its two-yearly meeting in May.

The working group was seeking to standardise or ”harmonise” 18 different physical traits in Holstein Friesians by classifying or precisely defining the ideal of each of those traits and promoting the evaluation system. . . .

Young Agricultural Professionals Are Driving Agricultural Development – Food Tank:

Young Professionals for Agricultural Development (YPARD) is a global network of young agriculture and development professionals who are coming together to create innovative and sustainable agricultural development. YPARD enables its young members to share knowledge and information, participate in meetings and debates, promote agriculture among young people, and organize workshops.

Food Tank interviewed Rebeca Souza, a YPARD representative in Brazil, to discover what YPARD members have been accomplishing.

Food Tank (FT): How did you become a representative for YPARD?

Rebeca Souza (RS): Last year, I was doing an internship at the U.N. Food and Agriculture Organization (FAO). Three other interns and I decided to organize an event calling on young professionals to share innovative ideas to overcome world hunger and malnutrition. YPARD was one of our partners, and Courtney Paisley, the director, was attending our event. I came to her asking if I could be a country representative in Brazil since no one was appointed to this position yet. She said yes! . . .

 


Labour tries to out-Winston Winston

August 5, 2014

Labour has forgotten that is trying to out Winston-Winston Peters on sales of land to foreigners:

The next Labour Government will keep rural and residential land in Kiwi hands, Labour’s Finance spokesperson David Parker says.

“New Zealanders are sick of seeing their farms and homes sold to overseas buyers with the profits and opportunities going offshore. No overseas person has the right to buy our land.

The opportunities stay here where the land is, so do the jobs which go with it.

The profit is only what’s left after costs – including the purchase price, wages, repairs and maintenance, development and tax – are paid.

A friend is New Zealand manager for overseas investors who own several farms. That company reinvests all its profit in the farms and adds more money from other investments elsewhere for development which includes a very expensive experiment with organic farming.

Their money is making the farms better and they are putting far more into the country than they are taking out.

“In all but the rarest of cases, sales of rural land to overseas buyers will be banned. Non-resident investors will also be banned from buying existing Kiwi homes.

What will those rarest cases be and who will decide?

“Changing who owns what already exists does nothing to increase New Zealand’s output. It just sells off New Zealand’s profit stream and kills off the Kiwi dream of owning our farms and homes.

It could increase New Zealand’s output if the investment improved production.

“Labour will reverse the current approach so that overseas buyers of rural land will have to prove they will create more jobs and exports than any New Zealand investor. Given New Zealanders are among the best farmers in the world it is an extremely hard hurdle to get over.

The hurdles overseas must leap are already very high and include the creation of jobs.  Among other conditions local buyers don’t have to meet but foreigners do is allowing public access.

New Zealand farmers are very good but they often lack the capital to be even better.

“This will ensure our farms are not priced out of the reach of New Zealanders.

If that is the case it would also mean the vendor gets less to invest elsewhere.

“We will also limit the discretion of the minister to ignore recommendations from the Overseas Investment Office.

“Labour will also restrict sales of residential homes to any non-residents unless they intend to move here, helping to keep the Kiwi home ownership dream alive, especially for young New Zealanders currently locked out of the housing market.

“The National Government is ignoring the legitimate concerns of New Zealanders about New Zealand land and houses being sold to overseas interests.

These concerns are largely based on emotion rather than facts.

A very small proportion of farm land is owned by foreigners and the problems with housing are largely a result of planning restricting the supply in Auckland and the earthquakes in Christchurch.

“Instead of accusing New Zealanders of being xenophobic, John Key and Steven Joyce should respect New Zealanders’ desire to keep New Zealand land in New Zealand hands,” David Parker says.

The accusation of xenophobia is because the protest is loud when it is a Chinese buyer and quiet to non-existent when it is from other countries like the USA, Britain, Australia or Germany.

Wee parties can get away with outrageous policies because they can always use the excuse they didn’t have the numbers to get them enacted.

The bigger parties are usually more circumspect.

Labour has forgotten this in trying to out Winston Winston Peters with this dog-whistle to the xenophobic.

It is also ignoring the benefits from the sale:

Stevenson Group, the concrete, quarrying and engineering firm that owns Lochinver Station, ran an extensive tender before agreeing to sell the 13,843 hectare farm to Shanghai Pengxin and says it will reinvest the funds in other businesses. . .

 The Stevenson family has owned Lochinver for 60 years but started as a drain-laying business in 1912, expanding into quarrying and construction in the late 1930s, and making concrete blocks from 1946. The original 5,260 ha Lochinver farm was acquired in 1958 and the family expanded to 16,595 ha “breaking the wild country into farming land” with “an enormous amount of hard work.”

“Farming is not the core business of Stevenson Group,” chief executive Mark Franklin told BusinessDesk. The company is freeing up capital to invest in other businesses such as expanding its Drury quarry, he said.

Franklin said the company had “really intensive discussions with lots of people both domestically and internationally. You can be very clear, anyone who was interested, I have spoken to.”

While Lochinver has a rateable value of more than $70 million, the purchase price hasn’t been disclosed. Still, Franklin said Pengxin’s offer wasn’t necessarily the highest on price alone and his company had considered a range of factors including retention of workers and the future of the property. Lochinver was more a farm enterprise than a farm. “In New Zealand a lot of people own farms but this is part of a supply chain.”

He said Pengxin had a long-term strategy to build a vertically integrated business.

The value in the property was “in its ability to grow a lot of grass,” which made it attractive for both dairy support and wintering stock, he said. Sheep farming was likely to remain a core part of the business. . .

The owner gets a large amount of money to invest in its core business, the new owner will bring money into the country, spend more on running and improving the property which will require employing locals and using local goods and services.

Federated Farmers which supports foreign investment in general has some concerns over the sale of Lochinver.

While Federated Farmers supports positive overseas investment into New Zealand’s farming system, it is concerned the potential sale of Lochinver Station to Shanghai Pengxin Group Co. Limited, may not provide sufficient benefit to New Zealand.

“Since there is no requirement to publicly notify applications to the Overseas Investment Office, Federated Farmers is frankly uneasy about the potential sale of Lochinver Station to Shanghai Pengxin,” says Dr William Rolleston, Federated Farmers President.

“New Zealand absolutely needs foreign investment but it has to be of benefit to the local and national economy. 

“That is why a ‘substantial and identifiable benefit’ test was incorporated into the overseas investment decision tree, further bolstered in 2012 by a High Court decision adding a “with and without” counterfactual test. 

“This was to ensure any investment, such as the one being proposed, has benefit over and above just making a farm work better.  Since Lochinver Station is highly regarded in farming circles there must be something very special and we are keen to know what that is. . .

He might be reassured by a speech Prime Minister John Key made to Federated Farmers in 2010:

. . . I want to take this opportunity to outline the Government’s position on overseas investment and talk about the changes we are making to the approvals regime.

In summary, we recognise the huge contribution that overseas investment makes to Kiwi jobs and Kiwi incomes.

New Zealand benefits from openness, both in trade and in investment.

However, New Zealanders have legitimate concerns about some aspects of overseas investment, particularly when it comes to land.

I share those concerns.

Good policy is a matter of striking the right balance.

We have reviewed the rules around overseas investment. For the most part, we think those rules are appropriate and the overall legislation is sound.

However, we have made a few adjustments to the approvals regime and given ministers increased flexibility to consider a wider range of issues when assessing proposed investments. . .

What I want to say first is that you, as individual farmers, and as members of Federated Farmers, have been right in the middle of recent debates about overseas investment, because a lot of those debates have been about land.

I’m sure that between you, you have some strong views and quite possibly some mixed views about overseas investment.

Unfortunately, much of the debate in recent months has been stirred up by politicians who are more concerned about getting on the news than they are about well-thought-out policy.

We are likely to see more of this tub-thumping and political posturing in the lead-up to next year’s election.

Politicians who were unwavering advocates of trade and investment when they were in government have somehow turned into defenders of Fortress New Zealand while in opposition.

Their views appear to have changed 180 degrees, for the sake of politics.

That is a shame, because at stake here are New Zealand jobs, New Zealand incomes, and New Zealand futures.

The reason we allow investment to flow between countries – both into New Zealand and out of New Zealand – is because it benefits New Zealanders.

We don’t do it for any other reason – we do it because we benefit from it.

In particular, overseas investment in New Zealand creates jobs, boosts incomes, and helps the economy grow.

Overseas capital can make things happen here that wouldn’t otherwise happen, grow businesses that wouldn’t otherwise have the means to grow, create jobs that otherwise wouldn’t exist, and pay wages that are higher than they would otherwise be.

Overseas capital makes New Zealand a vastly more productive country.

So there is absolutely no way we could enjoy the standard of living we do without overseas investment.

And part of that standard of living is being able to afford the education, law and order, and health services that our families want.

A recent study concluded that overseas investment in New Zealand lifted national income by around $5 billion between 1996 and 2006. That is an estimate of the return to New Zealand from overseas investment, over and above the cost of paying interest and dividends on that investment. . . .

He gave examples from the wine industry.

Since the year 2000 the number of wineries in New Zealand has almost doubled, and the industry directly employs 6,000 people.

This expansion of the wine industry into one of our most important export industries has largely happened because of overseas investment.

That investment has not just been into big producers, like Montana, but smaller wineries like Craggy Range, Sacred Hill, Dry River and Te Awa.

Overseas investment has allowed the industry to grow exponentially, and also develop from being a small and family-based sector into a more capital-intensive and technologically-advanced industry with real global connections.

Overseas investment also plays a positive role in New Zealand agribusiness, providing a vital source of capital for ongoing expansion and growth. PGG Wrightson, Synlait, CRV Ambreed and Anzco are good examples of such investment. . .

He also pointed out investment is a two-way street.

New Zealand businesses and individuals are themselves investing abroad.

There has been considerable investment, for example, by New Zealand dairy farmers in overseas farms. Fonterra, of course, has processing facilities in a number of different countries.

A free flow of investment also allows New Zealanders to diversify their savings across different countries and different industries. Most of the savings that are in the Super Fund, for example, and in many KiwiSaver funds, are invested overseas.

In fact, the total amount of equity investment into and out of New Zealand is surprisingly balanced. According to the latest figures, New Zealanders have around $53 billion of equity invested abroad while overseas investors have $61 billion of equity in New Zealand.

So international flows of investment – both into and out of New Zealand – are very important for our standard of living. . .

Then he addressed concerns about foreign investment:

I’m sure most people have these concerns from time to time, because as New Zealanders we have a very real and very profound sense of attachment to the land.

For one thing, our economy is based on agriculture so we recognise and respect that the land has an important economic value.

We also have a strong tradition of aspiring to own land – our own house, section, lifestyle block, farm, or block of native bush. We are not entirely comfortable as tenants – we want to put our roots down and call some place our own.

We also value outdoor pursuits – tramping, hunting, fishing, camping and picnicking – and even when we don’t do those activities, we like the fact that we could if we wanted to.

Our tourism marketing is very focused on New Zealand’s natural beauty, and we’re proud of it.

I have recently said myself that we don’t want to end up in a position where New Zealanders are tenants in their own country.

So I think the fact that people are concerned with overseas ownership is perfectly legitimate.

But we should be careful not to let those concerns get out of hand.

For a start, about a third of New Zealand – including our most iconic land – is protected by being in the conservation estate. So no-one from overseas can come in and buy Mt Taranaki or the Franz Josef Glacier, for example.

Second, it is a simple fact that land can’t change nationality. People can change nationality, of course, and factories can be relocated overseas. But a piece of land in New Zealand will always be here in New Zealand.

Because it will always be here, the use of that land will always be subject to New Zealand laws and regulations. And ultimately we as New Zealanders get to determine what those laws and regulations will be.

Third, and contrary to what some people might think, there hasn’t been an acceleration of overseas sales in recent years.

In fact, as at a couple of days ago, only 11, 203 hectares of land has been sold so far this year. That is certainly well below the peak of 380,000 hectares that were sold in 2006.

Fourth, the issue of whether businesses and properties are owned by New Zealanders or people from overseas, is for the most part, squarely in our own hands.

What I mean is that no-one can be forced to sell their business to an overseas investor, just as no farmers can be compelled to sell their land to foreigners.

Obviously with mortgagee sales or receiverships things get a little more complicated but, in general, people who feel very strongly that New Zealand-based assets should remain in New Zealand hands are free to sell only to New Zealanders.

The problem is that it’s people who don’t own the land who are complaining and wanting to dictate to whom the owners can sell.

Moreover, New Zealanders can always buy land and other assets back. What makes that difficult isn’t the rules around overseas investment, it is the fact that New Zealand has a poor savings record and therefore a relatively small stock of capital available for investment.

If, as a country, we saved more, we would own more of the assets in New Zealand, including land, as well as being less in debt to overseas lenders.

Finally, there are specific safeguards contained in the Overseas Investment Act and in the regulations which the government makes under that Act.

Over the past year or so the Government has been reviewing this system of rules, to make sure we have got the balance right between three key objectives:

welcoming desirable investment, in recognition of the benefits it brings for New Zealanders

providing a stable investment environment, where the rules are settled and everyone is clear about what they are; and

addressing public concerns about overseas investment, particularly in regard to land.

This review has come to three conclusions.

The first conclusion is that the Overseas Investment Act is a fundamentally sound piece of legislation.

The Act makes it clear that it is a privilege for overseas people to own or control sensitive New Zealand assets.

In particular, it lays out that foreign investment in land is only acceptable if it substantially benefits New Zealand, according to a range of factors which include, among other things:

  • the creation of new job opportunities in New Zealand
  • the introduction into New Zealand of new technology
  • increased export receipts for New Zealand exporters
  • the introduction into New Zealand of additional investment for development purposes
  • increased processing in New Zealand of New Zealand’s primary products
  • protection of native bush and other indigenous vegetation; and
  • protection of game species and walking access.
  • In addition, farm land has to be offered on the open market so that New Zealanders can bid for it as well.

These are very stringent criteria.

In fact, these are the very same criteria that Phil Goff was trying to pass off as brand new policy a few weeks ago. I welcome his endorsement of the current provisions of the Overseas Investment Act which, of course, was passed by his government back in 2005. . .

The third conclusion we came to was that a couple of additions should be made to the existing rules.

These additions would make sure that all public concerns about overseas investment, both now and in the future, could be covered off under the rules.

So the Government is adding two more factors that ministers must consider when they assess the benefits of a proposed overseas investment in New Zealand land.

The first new factor is very wide-ranging and looks at whether New Zealand’s economic interests will be adequately promoted by overseas investment.

This will allow ministers to consider, for example, whether any of our key exports are in danger of being controlled by an overseas entity, or whether there are non-commercial motivations driving a proposed overseas investment.

The second new factor is a “mitigating factor” which looks at whether the investor has a meaningful commitment to New Zealand involvement in the running or oversight of the investment.

That could include, for example, part ownership with New Zealanders, appointing New Zealanders to the board, or listing on a New Zealand exchange.

These two new factors will be weighed up alongside all the existing factors when ministers consider applications for investment.

We are also going to outline the Government’s policy on foreign investment more clearly by amending the Directive Letter issued to the Overseas Investment Office.

This will make things clearer for both the Office and for overseas investors.

So in conclusion can I stress that we allow overseas investment to flow between countries – both into New Zealand and out of New Zealand – because it benefits New Zealanders.

With the appropriate checks and balances in place, this investment is good for jobs, wages and growth.

After reviewing the overseas investment regime, and making some amendments to it, the Government is satisfied that we do now have the appropriate checks and balances. . .

National strengthened those checks and balances.

Foreign investors must jump very high hurdles and if they don’t meet the conditions imposed on them by the OIO – conditions which are strictly monitored – they cannot keep the property.

The Overseas Investment Office has yet to make its decision on the sale of Lochinver.

If it does approve the deal, the strict criteria it must apply, made stricter by National, will ensure that the benefits to New Zealand are greater than any which would come from the sale to a New Zealander.


Rural round-up

December 10, 2013

Meat industry looks to tackle over-capacity:

The meat industry needs to keep looking for a solution to its processing over-capacity because it’s an issue that isn’t going to go away, the head of one of the country’s big four meat companies says.

ANZCO Foods has been exploring rationalisation options with the two big meat co-operatives, Silver Fern Farms and Alliance.

They have been focusing on solving the over-capacity issue, as having under-used processing plants erodes meat company profitability – a problem which is worsening due to the ongoing loss of sheep and beef production to dairy expansion.

The Government turned down a request for legislative backing to tackle over-capacity by introducing a tradeable processing rights system, because other companies were not supporting it. . .

More ‘foodies’ less producers

AUSTRALIA’S “foodie” culture might be booming but at the same time, there’s a growing shortfall of young people interested in producing our food.

That’s according to Dr Brian Jones, from the University of Sydney’s Faculty of Agriculture and Environment, who has helped design and will lecture in the university’s new Bachelor of Food and Agribusiness, starting in 2014.

“Exact figures on the employment shortfall are hard to calculate, but in agriculture alone, it has been shown that while there have been around 700 graduates per year Australia-wide in recent years, job advertisements suggest demand for approximately 4500 tertiary qualified graduates per annum,” Dr Jones said. . .

Wandering stock warnings:

THE NZ TRANSPORT Agency and Police are reminding rural property owners particularly in Canterbury to ensure their properties are adequately fenced to contain their livestock.

The reminder comes after a number of reports of wandering stock on state highway road reserve in Canterbury in recent weeks.

The Transport Agency’s highway manager Colin Knaggs says wandering stock poses a serious safety risk to all road users, not only on the state highway network but also local roads. . .

Five-stand shearing record bid – Abby Brown:

Today five shearers are taking on something that has been never attempted before – setting a five-stand, eight-hour lamb-shearing world record.

Odd-numbered stand sheds were uncommon, with most four or six stands, event organiser Emily Welch said.

The five shearers would aim to shear 2800-2900 sheep during the Cavalier Woolscourers record attempt, she said.

Sam Welch, Angus Moore, and Cole L’Huillier would aim to shear 600 or more sheep, while Richard Welch and Peter Totorewa would aim to shear 500-550.

The record attempt will take place at Cashmore Farms, between Clevedon and the Firth of Thames, near Auckland. . .

Prevention best protection for facial eczema risk:

While hot humid weather across the country has provided the perfect conditions for lush pasture cover this spring, farmers need to stay alert for an increased risk of facial eczema through summer.

Dairy and beef cattle, sheep, deer and goats are all susceptible to facial eczema which can damage the liver and cause inflammation of the bile ducts and an accumulation of certain compounds resulting in sensitivity to sunlight.

Ballance Agri-Nutrients Animal Nutrition Product Manager, Jackie Aveling, says even before physical signs appear exposure to facial eczema can have a significant impact on animals particularly cows where it can result in an immediate drop in milk production. . .

PGW talks up farm sales:

LAND SALES should continue to rise through summer, says PGG Wrightson Real Estate.

After what it describes as an “auspicious spring”, PGW’s general manager real estate, Peter Newbold says farmers and their bankers are taking a lead from good weather and market outlooks.

“Climatic conditions this spring have been favourable over the whole country, setting up what should be an excellent growing season. Projected income for the agriculture sector also looks positive,” he notes. Newbold says some vendors have already capitalised on the competition for the limited number of farms for sale. . .


Rural round-up

October 20, 2013

Access big hurdle in China – Tim Fulton:

ANZCO chairman Sir Graeme Harrison took the podium at the China Business Summit to argue the big problem for the meat industry in China was market access.

“New Zealand, like all countries supplying meat to China, is currently caught in the midst of a huge reform process, with food safety and related regulatory changes a very prominent part,” Harrison said.

The process of getting NZ meat plants approved by AQSIQ, China’s inspection agency, had been tortuous.

One ANZCO plant the Ministry for Primary Industries certified for export to China in 2009 was finally officially listed by AQSIQ four years later, he said. . .

Alliance profit but no dividend – Alan Williams:

Alliance Group made a profit in its latest year but not enough to allow pool distribution or dividend payment.

Alliance had achieved good cashflow and improved its equity ratio over the year, chairman Murray Taggart told shareholder farmers in Christchurch last week.

Alliance was cautious about markets for this season but there were several positives, Taggart said.

Detailed results of the latest year would be released soon. . .

Mega-merger of dairy industry was ‘miracle’ – Clive Lind:

It was a miracle the New Zealand dairy industry, with it’s strong-willed people and philosophical conflicts, completed the mega-merger that formed Fonterra, says the author of a new book.

Clive Lind, a Fairfax executive and former daily newspaper editor, spent three years researching and writing Till the Cows Came Home, to be published mid-next month.

Through the eyes of key industry people he interviewed, Lind tells the stories behind the multi-billion dollar industry – from 40 years ago when the single-seller Dairy Board was jolted into an urgent search for new markets when Britain started talks to enter the European Economic Community, to the emergence of added-value products, the economics-driven consolidation of more than 100 dairy companies into less than a handful, to the writing on the Beehive wall for the single-seller producer board and the efforts of the industry to find a structure solution for the future. . . .

Plant & Food Research innovation recognised:

Plant & Food Research had two reasons to celebrate at last nights New Zealand Innovators Awards held at Auckland Museum. The Crown Research Institute won the ‘Innovation in Environment and Agriculture’ category for research into insect sex pheromones, while the Biopolymer Network (BPN), a company jointly owned by Plant & Food Research, Scion and AgResearch, also won the ‘Innovation Excellence in Research’ category.

Sex pheromones, the natural chemicals released by the females of many insect species to attract mates, can be used to disrupt communication between insects, reducing their ability to identify mates and subsequently leading to a reduction in the population and reduced reliance on chemical controls. . .

Raw milk venture renews enthusiasm – Tony Benny:

Selling raw milk direct to the public has allowed a Canterbury farmer to get back to what he loves and that’s milking cows.

Geoff Rountree and his wife, Sandra, gave up dairy farming nine years ago because their hay-making business was growing and the days were not long enough to do everything.

“The contracting was building and it was getting a bit out of hand because the cows weren’t coming first, they were coming second and that shouldn’t have been the case,” he said.

The 105 cow herd went and the seven a side herringbone shed at Oxford was mothballed but Rountree missed being a dairy farmer. “Sandra always said to me, ‘stop pining to milk cows, go and milk someone else’s’.” . . .

Tweeting shows common concerns – Abby Brown:

A world-wide live Twitter discussion, #Agrichatworld, on issues facing farmers was a global first and revealed some recurring concerns, organiser Josien Kapma said.

Those concerns included climate, sustainability, ignorance of consumers, ever fewer farmers and complexity around farms.

The conversation also showed that farmers think the public have the wrong view of farmers’ values which is exacerbated by the rural/urban divide.

One of the questions asked by @AgrichatUK was what farmers wish the non-farming public knew about them.

The respondents’ tweets showed that farmers feel the urban/rural divide is alive and well and growing as the non-farming public tend to think as farmers only being about the bottom line and not also wanting to be environmentally friendly and sustainable. . .


Rural round-up

August 22, 2013

Age crisis dawns as sunset years sets on workers – Hugh Stringleman:

KPMG has delved into the perplexing reasons why young people don’t take careers in agriculture more seriously in a country which relies upon the primary sector. Hugh Stringleman has read its latest Agribusiness Agenda report.

The capability of the people who work the land has made New Zealand what it is today.

While competitors can replicate equipment and processes, it is not easy to replicate the insight and relationships that people have developed over decades, according to the latest KPMG agribusiness report.

But the ages of existing farmers, orchardists and scientists continue to rise and the entire primary sector faces manpower shortages now and in the future. . .

Balance sheets under stress from lower livestock numbers – Allan Barber:

After the discussions between meat companies, lobbying by MIE, conferences and strategy debates, right now an eerie calm has settled over the meat industry. This is partly due to the mid winter slowdown in processing activity with only bobby calves to get excited about

At this time of year companies are doing their best to minimise any losses in the last quarter. There is no doubt the final results will be a lot better than last year, but they have to be, because the large companies could not sustain another big hit to their balance sheets.

Combined current and non-current debt between Silver Fern Farms, Alliance and ANZCO of $710 million at 30 September 2012 to fund losses and inventories means a substantial improvement this season is absolutely essential. The noises from the processors suggest moderate profits at best, mainly because of a sell down of inventory leading to reduced current debt and better control of procurement, offset by lower margins. . .

Spierings leads charge of change – Fran O’Sullivan:

Fonterra boss Theo Spierings has consolidated his powerbase at the dairy co-operative with chairman John Wilson’s emailed statement to shareholders that the board has confidence in the way the chief executive is handling the tainted whey protein affair.

The brutal truth is that long-time senior executive Gary Romano – who ran the New Zealand operation – had already offered himself up as the sacrificial lamb.

Romano’s resignation came before the various inquiry teams had even started delving into who to blame for the late discovery of “clostridium” in a batch of whey protein which had been made into infant formula and other products.

Since then two other executives have been put on leave – a clear indication that Fonterra already has a good idea where the buck will stop on this fiasco. . .

Auctioneers competition returns:

Following a successful inaugural event, the Heartland Bank Young Auctioneers Competition will return to the Canterbury A&P Show in 2013. 

The competition aims to showcase and develop young livestock auctioneers and improve the standard of auctioneering across the board. 

During the judging, which includes a test of auction rules and a mock auction, each entrant will be required to sell three lots of heifers/bulls. . .

Eastern Southland Dairy Conversion Benefits from Farm Environment Competition:

Entering the Ballance Farm Environment Awards helped a fledgling Southland dairy operation measure its progress as a successful and sustainable farming business.

South Coast Dairy Ltd, an equity partnership between five families, owns 202ha between Curio Bay and the Haldane Estuary in Eastern Southland. The former sheep and beef farm was converted four years ago and now milks 385 cows on a 135ha milking platform.

Mindful of the farm’s location in a sensitive coastal area, the owners have made a big effort to mitigate the environmental impacts of dairying, with extensive riparian fencing and planting work conducted following consultation with the Department of Conservation, Environment Southland, Landcare Trust and Fish and Game. . .

Brancott Vineyard celebrates its 40th anniversary:

As the pioneers of the Marlborough wine region and its signature varietals, Sauvignon Blanc and Pinot Noir, Brancott Estate is excited to celebrate 40 years since the first planting of vines at Brancott Vineyard, home of world-renowned Brancott Estate wines.

On 24 August 1973, in front of a crowd of local media, politicians and business leaders, the Marlborough wine industry was born. At the time, the founder of what is now Brancott Estate, Frank Yukich made the statement that “wines from here will become world-famous” – and indeed they have, receiving many prestigious awards and accolades around the world. . .


Rural round-up

August 12, 2013

 

Bacteria detection a game changer for meat industry:

A SOLUTION to a meat industry headache is offered by Christchurch company Veritide.

“We’ve proven the concept of our real time, non-contact bacterial detection technology in the meat industry,” says chief executive Craig Tuffnell. “We have a known problem and a huge opportunity to provide a solution for meat companies and food processors that need to identify and manage their pathogen risk.”

Tuffnell says Veritide has worked with ANZCO to prove its concept, and it and other food processing companies will assist prototype development, testing and validation, and as an actual product is taken to market. . .

‘Part of deer industry fabric’ – Sally Rae:

”It’s not the end for Invermay. It’s not the end for Otago.”

That was one of the messages from Federated Farmers national vice-president William Rolleston as he outlined his thoughts on AgResearch’s proposed major restructuring, which will result in 85 jobs at Invermay, near Mosgiel, being relocated to other parts of the country.

While it was going to be tough on scientists and their families who were going to have to move – ”that’s always painful, we have to recognise that” – he believed that, in the long-term, it was a sensible strategy for AgResearch to be clustering itself around the country’s two agricultural universities. . .

Drought “response hero” gets life membership:

A long-standing Federated Farmers member has been granted life membership of Federated Farmers. Former Hawke’s Bay provincial president, Kevin Mitchell, was bestowed the honour after more than 30 years of outstanding service to the Federation.

“It is the least our organisation can do,” said Will Foley the current Federated Farmers Hawke’s Bay provincial president.

”Kevin was my first introduction to Federated Farmers and has been an inspiration.  He has always strived to uphold the Federation’s drive to achieve profitable and sustainable farming. . .

Waste animal products turned into a winner:

PLACENTAS WERE never part of Angela Payne’s plans when she started in business in 2002 supplying ‘waste’ animal products to a few niche clients.

“I didn’t think I would end up collecting placentas, let alone they would become the main product,” says Payne, founder and sole owner of Agri-lab Co Products, Waipukurau. The business has won the 2013 Fly Buys ‘Making it Rural’ Award, recognising manufacturing and creative businesses run by members of Rural Women NZ.

The business sources waste animal products including placentas, glands and membranes from farmers and freezing works, and, in some cases, freeze-drying them for health supplements and skincare products. Most are exported as frozen raw ingredients for further processing overseas. . .

Cowboys accept challenge – Sally Rae:

Three Southern cowboys are heading to Australia this month as members of a high school team to compete in a transtasman challenge.

The team is captained by Omarama teenager Clint McAughtrie (17), a year 13 boarder at John McGlashan College, and includes Logan Cornish (16), from Central Otago, and Clint’s brother Wyatt (15), who is travelling reserve. The trio are all bull riders. . .

Over the moon about deer cheese:

John Falconer runs 5000 deer on 4000ha at Clachanburn Station and he’s milking them for all they’re worth – literally.

The Maniototo farmer has turned to milking hinds in the past 15 months to open up new avenues for growth.

And what does Mr Falconer make with his deer milk? Cheese, of course.

”It’s certainly different, it’s certainly unique,” he says of the cheeses’ flavour. . .

Campaign for planting bee friendly plants – Annabelle Tukia:

Canterbury researchers believe they’ve come up with a way to increase biodiversity and bee populations on farms, and they say they can do it without having to use valuable productive land.

Cropping farmer John Evans is hoping to have thousands of healthy bees pollinating his crops this spring and summer.

That’s because he’s planted 12,000 trees on unused land around his irrigation pond, giving the bees something to eat even in the middle of winter.

“Good farming is always working with nature rather than against nature,” says Mr Evans. “The fact that we can encourage insects and bees is letting nature work for us rather than fighting it all the time.” . . .


Rural round-up

August 2, 2013

Debt puts pressure on large companies to achieve solution – Allan Barber:

If there was ever a compelling reason for the meat companies to sort out the problems of procurement competition and excess capacity, the debt levels on the balance sheets of the big three at the end of last season provide one.

Between them they stacked up combined current and non-current borrowings of $710 million, 45% of these on Silver Fern Farms’ books, 28% on Alliance’s and 27% on ANZCO’s. No wonder they can’t afford another loss-making year like 2011/12 which makes this year so important for getting back into as healthy a condition as possible.

The forecast livestock volumes, especially sheep and lambs, for the next four years place a great deal of pressure on the companies to find a solution urgently before procurement competition breaks out yet again. MPI’s Situation and Outlook Report which came out in June predicts a gradual recovery in values, but livestock numbers and export tonnages are virtually static or declining, because of the effects of the drought, herd and flock rebuilding and the impact of dairy on land use. . .

Ballance pays record rebate after record performance:

 Ballance Agri-Nutrients shareholders are in line for a record rebate and dividend of $65/tonne, along with a recommended 60 cent increase in the value of their co-operative’s shares to $8.10.

The rebate averaging $60.83 per tonne and a fully imputed dividend of 10 cents per share will be paid out nearly six weeks earlier during mid-August, with Ballance Chairman David Graham saying the payment has been brought forward to reward shareholders and assist them with cash flows at the start of the season.

“The drought may be over but the financial impacts are not, so we are fast-tracking the payment for shareholders in recognition of that so they can gain the full benefits of a good year for their co-operative as quickly as possible.” . . .

AgResearch creating the ‘Silicon Valley of Food’

 With food being to New Zealand what ‘Silicon Valley’ is to the United States’ technology sector, Federated Farmers is backing AgResearch’s strategic move to create two major research campuses supplemented by two smaller ones.

“Federated Farmers is backing AgResearch in what is an important strategic move for it and New Zealand,” says Dr William Rolleston, Federated Farmers Vice-President.

“Its masterplan is about supporting primary exports to reach $64 billion by 2025.

“We cannot deny there is a human element to this change and while 40 positions are slated to go, the actual number will be low given this is a four- year transition. That said, it will require a number of staff and their families to consider where their long-term futures lie.

“Federated Farmers is encouraged to see that no staff will be required to relocate until 2016. . .

Reduce nitrate leaching with mobile milking system – Milking on the Moove:

Unconventional ways to reduce nitrate leaching

Part 1 
A few weeks ago I explained how agroforestry is a farming system that is able to reduce nitrate leaching.

Part 2
Today I will talk about how a dairy farming system based around a mobile cowshed is able to reduce the level of nitrate leaching.

A traditional cowshed is in a fixed location. The cows have to be within walking distance of the cowshed because they need to get milked twice a day.

The main cause of nitrate leaching on dairy farms in the cows urine patch.

For this reason, the cows are always grazed on the same block of land surrounding the cowshed. . .

Honouring the unsung young heroes of the Hawke’s Bay wine industry:

Moore Stephens Markhams Young Viticulturist of the Year Competition Friday 2 August 2013.

Hawke’s Bay is internationally renowned for its wine. The local wineries and winemakers are household names, with exceptional reputations in New Zealand and further afield.

Less well known, but just as crucial to the crafting of world-beating wine, are the viticulturists. They are intimately involved in all aspects of vineyard management; their extraordinary knowledge ensuring winemakers have the best possible grapes to work with after each harvest.

The region’s best up-and-coming viticulturists are being honoured on Friday 2 August at the Moore Stephens Markhams Young Viticulturist of the Year Competition. This is being held at Mission Estate – their viticulturist Caine Thompson took out the Hawke’s Bay competition in 2009. He went on to win the national awards, before being named New Zealand Young Horticulturist of the Year. . .

Technology could be future boon for kiwifruit growers:

A new online system is being developed that might one day help kiwifruit growers make decisions on when to spray orchards for pests and diseases. The system is in the early stages of development in a joint project between the University of Waikato and Plant & Food Research (PFR).

The web-based tool is should help reduce time and costs associated with pest monitoring in kiwifruit orchards and spray application.

The current process of physically monitoring pest levels is time consuming, says University of Waikato summer research scholarship student Michael Fowke.

“Spraying is a necessary exercise for growers and a lot of time is spent trying to identify when or whether spraying is needed,” he says. “It will need a lot more testing in the field but potentially this system could cut that time down considerably.” . .

Iwi Suggests To Pull Plug on Dam:

At a Hui an Iwi held at Matahiwi marae last night, Ngāti Kahungunu Iwi Incorporated was asked by several Heretaunga hapū to oppose the Ruataniwha Dam project on their behalf.

The main reasons given were inadequate consultation, selective information release, and the failure by the Hawke’s Bay Regional Council to recognize and acknowledge the Tino Rangatiratanga that hapū had exercised over rivers and water bodies from time immemorial. . .

Keen-To-Learn Farmer Turns to Ballance Farm Environment Awards for Information and Inspiration:

Returning to the family farm five years ago was an in-the-deep-end experience for Waikato farmer James Bailey and his wife Ella.

‘Momona’, a 440ha (effective) Tirau sheep and beef farm, had been in the Bailey family for five generations, so James was eager to start off on the right foot. While he was mindful of the work performed by past generations, he was also keen to improve the environmental sustainability of the business.

James, a keen surfer, is co-founder of Sustainable Coastlines – an award-winning registered charity that organises coastal clean-ups, educational programmes and riparian plantings. . .


%d bloggers like this: