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

January 28, 2020

Farmers face ‘catastrophic’ costs in coming years, despite all sectors performing well – Bonnie Flaws:

Farmer morale is low, despite record highs for commodity prices last year, farmers say.

Lamb, beef, forestry and fruit all saw record prices in 2019, and 2020 got off to a good start with milk prices up 2.8 per cent.

But the sheer amount of challenges “coming down the line”, from regulation like the zero carbon bill and freshwater management policies, to restricted lending from banks has resulted in low farmer confidence and morale, Canterbury dairy farmer Jessie Chan-Dorman said.

“Yes, it’s a really good milk price, but most of us will be paying down debt and consolidating. There won’t be the growth we’ve seen in previous years.” . . 

Drought conditions on the horizon with pockets of extremely dry weather in Waikato – Sharnae Hope:

The country’s biggest dairy region is facing the first signs of a “green drought” after a spell of limited rain for the last couple of weeks.

With summer weather finally in full force temperatures are expected to rise and soil moisture levels plummet throughout Waikato and Northland, NIWA say.

While much of the region still has green paddocks, Northern Waikato and Coromandel/Peninsula have entered very dry to extremely dry conditions.

Waikato Federated Farmers president Andrew McGiven said it’s not unusual for this time of year, but if it continues into late February farmers will be concerned. . . 

Hailes a meat man to the bone – Neal Wallace:

Danny Hailes has had plenty of variety in his 27-year career with Alliance but it now reaches a new level with his elevation to livestock and shareholder services manager. He talks to Neal Wallace.

WHEN Danny Hailes looks back over his meat industry career he quotes one statistic he says reveals much about the capability of New Zealand sheep and beef farmers.

In 2004 Hailes managed the company’s newly bought and renovated Dannevirke plant where the average weight of lambs processed that season was 15.5kg.

Seven years later in his last year managing the Pukeuri plant north of Oamaru the average weight of lambs processed was over 18kg. . . 

2020 the year of ‘New-Gen’ ag – Dr Jacqueline Rowarth:

Could 2020 be the year of New Zealand ‘generative agriculture’? 

A new thought for the New Year – New Zealand ‘generative agriculture’… or New-gen, for short.

New-gen captures New Zealand’s approach to the soil-plant-animal-environment continuum that makes up agriculture: animals have been moved in herds or flocks around the farm or station, enabling them to graze the pasture at its optimum quantity and quality and return dung and urine to the soil in situ. Earthworms have been introduced to enhance organic matter incorporation into the soil and water has been applied in some areas to overcome drought. The result is that organic matter has been maintained or increased.

Efficiencies developed over the past 100 years have been based on science, informed by research, and honed by farmers. . . 

Rabobank climbs rural loans ladder – Nigel Stirling:

Rabobank has leapfrogged ASB to become the country’s third largest rural lender in yet another sign the Australian banks are backing off lending to farmers.

The Dutch bank had $10.7b on loan to farmers at the end of September, behind ANZ with $17.4b and the BNZ with $14.1b, official figures show.

ASB, which is culling jobs at its rural lending division as it sets itself for a slow-down in lending growth, slipped to fourth place with $10.6b of rural loans. Westpac rounded out the top five with loans of $8.6b.

The switch in rankings follows a strong period of lending growth for Rabobank at the same time as three of the four Australian-owned banks throttled back their lending to the sector. . . 

Veganism may not save the world but healthier animals could – Jeff Simmons:

At this month’s Golden Globes, the meal got almost as much attention as the movies with award-winner Joaquin Phoenix and other celebrities touting veganism as a path to saving the planet. The event’s meatless menu created a lot of buzz and critics gave the effort mixed reviews.

I’m a big proponent of reducing our impact on the environment and I applaud people who want to be part of real change. We face big challenges and it will take all of us working together. If there’s one thing I can absolutely agree with Joaquin on, it’s that we should be talking about animals and their impact on our world. But his storyline is missing the bigger picture. Let’s make sure the facts don’t hit the cutting room floor.  . . 

 


Rural round-up

July 18, 2018

Super grass offers huge benefits – and it’s green! Pity about the GM … – Point of Order:

Environmentalists should be encouraging NZ’s development of ryegrass with the potential to substantially increase farm production, reduce water demand and decrease methane emissions.

We are told the grass has been shown in AgResearch’s Palmerston North laboratories to grow up to 50 per cent faster than conventional ryegrass, to be able to store more energy for better animal growth, to be more resistant to drought, and to produce up to 23 per cent less methane (the largest single contributor to New Zealand’s greenhouse gas emissions) from livestock. . .

Dig deep for sheep – Annette Scott:

Confidence in sheep is at an all-time high with demand at the Temuka in-lamb ewe fair providing the real proof of industry positivity.

With record processing prices for mutton the sale was always going to be the real test for the market, PGG Wrightson livestock manager Joe Higgins said.

With just 6000 ewes offered and close to 100 registered buyers it was a sellers’ market with clearly not enough sheep to go around. . .

Wool Summit leads to greater direction:

Key players in New Zealand’s wool industry are to form a new coordinating group to better tell wool’s story, says Federated Farmers.

At this week’s Wool Summit in Wellington there was a real sense of urgency to get cooperation and momentum, says Miles Anderson, Federated Farmers Meat & Wool Industry Group Chairperson.

New Zealand wool producers have been under pressure, particularly in the last two years as prices for strong wool hit record lows. . .

Eradicating cattle disease M. bovis may be costly, even impossible, but we must try – Richard Laven:

In May this year, the New Zealand government decided that it would attempt to eradicate Mycoplasma bovis, a bacterial disease that affects cattle.

A phased eradication means that an additional 126,000 livestock will need to be culled, at an estimated cost of NZ$886 million.

Here’s what we know, what we don’t know and what’s at stake. . .

Works not an out for sick stock – TIm Fulton:

Stock transport is high on the animal welfare agenda as new regulations come into force.

Inspectors will be especially alert to badly lame stock being carted to meatworks, Ministry for Primary Industries compliance team manager Peter Hyde told a Beef + Lamb New Zealand meeting in North Canterbury. 

“Using the meat companies to sort out your lameness issues is not acceptable,” he said. . .

 

Kiwifruit expected to remain king of horticulture export industry – Julie Iles:

Kiwifruit exports, valued at $1.86 billion, remains New Zealand’s most valuable horticulture export. 

It’s closely followed by the value of wine exports, at $1.72b, though they were less than half the value of the kiwifruit exports in 2004. 

The latest forecasts by the Ministry for Primary Industries (MPI) predict the kiwifruit export industry will grow in value at a slightly faster pace than the wine industry over the next four years.  . .

Farmlands joins Apple and Emerites in KPMG Award

Farmlands Cooperative has been named the New Zealand winner of KPMG’s prestigious Global Customer Experience Excellence (CEE) Award.

New Zealand’s largest rural supplies and services cooperative was presented with the award at a ceremony hosted by KPMG in Auckland this morning.

Farmlands joins 13 other winners of the award world-wide, including Singapore Airlines (Australia), Apple Store (Italy), Alipay (China) and Emirates (UAE). Following Farmlands in the top five for New Zealand were Air New Zealand, Kiwibank, New World and ASB Bank. . .

America’s cheese stockpile just hit an all-time high – Caitlin Dewey:

The United States has amassed its largest stockpile of cheese in the 100 years since regulators began keeping tabs, the result of booming domestic production of milk and consumers’ waning interest in the dairy beverage.

The 1.39 billion-pound stockpile, tallied by the Agriculture Department last week, represents a 6 percent increase over this time last year and a 16 percent increase since an earlier surplus prompted a federal cheese buy-up in 2016. . .

 


Rural round-up

October 8, 2015

Key sectors welcome TPP – Colin Bettles:

SUGAR may have been served a bitter-sweet outcome in the final Trans-Pacific Partnership but other key Australian commodities like beef, grains, dairy and cotton have tasted some success.

The Cattle Council of Australia (CCA) said the TPP deal – signed overnight by Federal Trade Minister Andrew Robb – would provide significant increased market opportunities for Australian grassfed beef producers, when it comes into force.

Game changer for beef

CCA president Howard Smith said the agreement signifies a game changing opportunity for the Australian beef industry which sees a positive future fort itself, in export markets. . . 

Rolleston wants GM use debate – Richard Rennie:

Councils’ efforts to ban genetically modified crops have Federated Farmers banging up against public opinion in some rural districts.

But federation president Dr William Rolleston argues the move to ban GM crops threatens farmers’ ability to innovate and is a choice they might lose through misinformation and misunderstandings about what the science is really about.

The federation’s case against council bans on GM use got a severe bruising when they lost on appeal to the Environment Court earlier this year. . . 

Milk price expected to hit $3000/t this year – Jemma Brackebush:

Banks and analysts are predicting international dairy prices will continue to rise, and a lift in Fonterra’s forecast payout looks likely.

Prices in the global dairy trade auction rose for the fourth consecutive time on Tuesday night.

The price for the key commodity, whole milk powder, which underpins the price Fonterra pays its farmers, increased by 12.9 percent to $US2,824 a tonne. . . 

Record jail sentence for animal abuser Michael Whitelock:

A dairy worker has been handed what is believed to be New Zealand’s longest-ever prison sentence for animal cruelty, after cows were beaten, had their tails broken and were shot in the kneecaps on a farm he managed.

Michael James Whitelock was sentenced in the Greymouth District Court on Wednesday to four and a half years jail and banned from owning animals for 10 years.

He had earlier pleaded guilty to 12 charges, including ill treatment of animals, unlawful possession of firearms and attempting to pervert the course of justice. . . 

Farmer suicides up – Jemma Brackebush:

Figures from the Ministry of Justice show 27 men in farming communities committed suicide in the past year ended June.

The chief coroner Deborah Marshall released annual provisional suicide statistics on Tuesday, which showed 564 people died by suicide in the past year, up 35 on the previous year and the highest number since records began eight years ago.

Male suicides rose from 385 last year to 428, and female suicides dropped from 144 to 136. . . 

Banks fork out a total $25.5M over rural interest rate swaps – Fiona Rotherham:

(BusinessDesk) – The Commerce Commission has completed the distribution of $25.5 million to complainants and rural charities after reaching settlements with banks who had marketed interest rate swap products to farmers.

The commission says nearly $20 million in cash has been paid to eligible customers while $1.9 million was offset by the banks against debts some complainants owed to them. A further $2.5 million went to 14 regional Rural Support Trusts and the Dairy Women’s Network and the commission received $1 million to cover a portion of its investigation costs, including legal expenses. The bulk of the money came from the ANZ Bank New Zealand, which paid out $19.3 million in total, $3.2 million from ASB Bank and $3 million from Westpac Banking Corp. . . .

All Geared Up For The Glammies:

Entries are now open for the 2016 Golden Lamb Awards, aka the Glammies, which seeks out the tastiest and tender lamb in New Zealand.

The competition gives farmers the opportunity to enter their lamb into one of the most highly regarded competitions the industry has to offer.

The entries are then assessed by Carne Technologies in Cambridge for tenderness, yield, succulence and colour.

The scientific testing determines which top four entries from five categories will make it through to the final stage of the competition, a taste test, held at the Upper Clutha A&P show in Wanaka on 11 March 2016. . . 

New Zealand Bloodstock to Sponsor New Race in China:

New Zealand Bloodstock and the Inner Mongolia Rider Horse Industry Co. Ltd have partnered together to introduce the New Zealand Bloodstock Cup to be held in Inner Mongolia, China next year.

2015 RTR
The race is open to horses purchased by any Chinese buyer at this year’s New Zealand Bloodstock Ready to Run Sale in November. To be held in July 2016 at Korchin, Inner Mongolia, the New Zealand Bloodstock Cup is worth RMB500,000 and will be run over 1800m.

NZB’s Co-Managing Director Andrew Seabrook is excited about the formal partnership reached between NZB and Rider Horse Group. . . 

Serious savings from whole-farm soil testing:

Whole-farm soil testing saves Taranaki farmer Hayden Lawrence about $15,000 on fertiliser each year.

Hayden, who farms in equity partnership with his wife Alecia and parents in Taranaki, began whole-farm soil testing seven years ago. To date, he has reaped about $90,000 in savings and has increased pasture production from 14.5 tonnes per hectare to 18.6T/ha on the 97ha property.

The Lawrences milk a maximum of 240 cows on an 85ha milking platform, using their hill country block to graze heifers. They also follow an 18-month cropping rotation, that sees paddocks planted into silage, oats, chicory and then into pasture. . . .

RHĀNZ welcomes Government’s new rural connectivity target:

The Rural Health Alliance Aotearoa New Zealand welcomes the new rural connectivity target announced by the Government today.

The target means nearly all rural New Zealanders will be able to access broadband speeds of at least 50Mbps by 2025.

RHĀNZ Chairperson, Dr Jo Scott-Jones, says securing reliable and affordable telecommunications services is critical to the health and wellbeing of rural communities and is a top priority for all 40 RHĀNZ members.

“As part of our RBI phase 2 submission to Government earlier this year, we called for more ambitious targets for rural broadband speeds, so it is really pleasing to hear Minister Adams’s announcement today,” he says. . . 

Anglers urged to vote ‘in best interests of our fishing and hunting resources’:

The country’s anglers and game bird hunters are being reminded to make sure they vote in the Fish and Game Council elections.

Fish & Game Communications Manager Don Rood says that because voting closes at 5pm on Friday (9 October), those who are eligible and haven’t voted are advised to do so online, rather put voting papers in the post.

“We urge licenceholders to take the time to vote – to exercise their right to choose the people who can best advance their local region’s hunting and fishing interests. . . 

Free entry for 2016 Games:

The second annual Hilux New Zealand Rural Games takes place in Queenstown next Waitangi weekend (Sat 6th – Sun 7th Feb) and entry won’t cost you a cent.

Two days of ‘sports that built the nation’ and live entertainment on the Recreation Ground plus the Running of the Wools – more than 400 merino sheep herding through downtown Queenstown – will be completely free to watch.

We’ve been able to waive ticket prices thanks to the generous support of our patrons and event partners including major sponsors Toyota, Fonterra, Line 7, Ngai Tahu Farming, Jetstar and Husqvarna which has increased its support from the inaugural Games.

The Running of the Wools is once again supported by our friends at clothing and gift retailer, Global Culture. . . 


Rural round-up

August 1, 2015

A Free Trade Deal must include Free Trade:

Federated Farmers says the Government must hold firm on a deal for agriculture at the Trans Pacific Partnership talks in Hawaii.

Federated Farmers’ Dairy Chair Andrew Hoggard is adamant that the reason for New Zealand being at the 12 nation talks is to establish free trade in the region, and a trade deal that doesn’t include meaningful access for dairy is not a free trade deal.

“Let’s be clear. Dairy is our largest export earner. It would be like the Japanese concluding a deal that didn’t have anything in it for automotive or technology trade.” . .

 

Like Uber but for dairy – Offsetting Behaviour:

There could be a lot of opportunities for Canadian dairy in opening up their markets to foreign competition, and in having foreign markets opened to their products. But there would be transitional costs.

The Globe and Mail reports on some relevant aspects here. But they miss the supply management angle. One important reason that Canadian dairy farmers oppose changes to the system is that they own a lot of quota rights. Under the Canadian system, the right to milk a cow costs money. And just like taxi permit owners in regulated markets hate Uber, Canadian dairy farmers hate New Zealand. But who can really blame them? If you were sitting on a big regulatory asset somebody proposed wiping out, wouldn’t you object?  . . .

Health and Safety — some way to go – Katie Milne:

The long awaited report back to the Select Committee on the Health and Safety Reform Bill has now occurred.

We don’t totally know what we are getting. The Labour Party will be opposing the legislation.  The Council of Trade Unions doesn’t like it. The Government has signalled a Supplementary Order Paper to amend the Bill before it goes through its final stages before becoming law and there are regulations to be drafted to sit under the eventual Act as well.

Besides this, WorkSafe New Zealand has considerable discretion how it implements the new Act and the interpretation courts put on the sections and regulations will keep a whole lot of lawyers busy for some years to come. . .

Farmers warned to prepare for more milk cuts:

National dairy industry body DairyNZ is warning farmers to prepare for further cuts to companies’ already low milk price forecasts.

It comes as ASB announced this morning it expects Fonterra to slash its forecast by $1 to $4.25 per kilo of milk solids when it reviews its payout next week.

However, the bank is predicting an end of season payout of $4.50. . .

T&G Global strengthens position as asparagus marketer –  Jonathan Underhill:

(BusinessDesk) – T&G Global, the fruit marketer controlled by Germany’s BayWa, has acquired assets from long-term Australian partner M&G Vizzarri, strengthening its position as a major asparagus trader.

T&G’s 50 percent-owned Australian subsidiary Delica will buy Vizzarri Farms, the asparagus marketer founded by Mario and Gina Vizzarri, from its Delica co-shareholder M&G Vizzarri. No price was disclosed.

The joint venture will be renamed T&G Vizzarri Farms and will become “one of the leading asparagus traders in the southern hemisphere,” T&G Global said in a statement. Targeted revenue from the enlarged business is about $40 million in its first year and more than 5,000 tonnes, it said. Currently Delica handles export sales for Vizzarri Farms, which owns 29 properties with a combined 1,900 acres. . .

Treble Cone’s Busiest Ever Start to a Snow Season:

The South Island’s largest ski area – Treble Cone (Wanaka, New Zealand) has enjoyed its busiest ever start to a snow season and has set new records for both its ‘busiest week overall’ and ‘busiest July ever’.

With fantastic pre-season and early season snowfalls the entire mountain including the Home and Saddle Basins, the right-of-passage Summit Slopes, the revered expert only Motatapu Chutes, and the Matukituki Basin were all open from Opening Day.

Over the first week of the New Zealand school holidays Treble Cone enjoyed its busiest ever week of skier visits, with all terrain open spreading guests across the entire mountain enjoying the cold dry snow.

 


Rural round-up

June 24, 2015

Still more milk than market – Rabobank’s latest dairy outlook:

A recovery in global dairy prices is still on the horizon, however burgeoning stocks have pushed out any sustained upturn in the market until the first-half of 2016, according to Rabobank’s latest Dairy Quarterly report.

The global outlook, released exclusively to Rabobank’s agribusiness clients earlier this week, reaffirms the bank’s position that a recovery phase is imminent, however it has pushed out the timeframe by at least three months. . .

 The good and bad of farming with lifestyle neighbours – Kate Taylor:

The views from Philip and Robyn Holt’s farm, Maraetara, are spectacular – across the Ahuriri estuary to Hawke Bay and Napier Hill.

They’re not the only ones to appreciate it though. When Philip was growing up the only neighbours were other farmers. Now houses dot the hillsides and Maraetara has boundaries with about 70 neighbours.

This growth of lifestyle blocks has negatives and positives, says Philip. . .

NZ beekeeper plans bee sanctuary on Niue – Cheryl Norrie:

When beekeeper Andy Cory went to Niue in 1999 in search of a honey business, he had to hack his way through a jungle to find a collection of beehives which had been abandoned 30 years previously.

He remembers finding 240 hives.

“They were all rotten and had fallen on their sides. The bees were still in them and they were fine.” . . .

Too little data to pinpoint cause of NZ beehive deaths – Suze Metherell:

(BusinessDesk) – The sudden and devastating demise of honey bee hives, known overseas as colony collapse disorder, may threaten New Zealand’s $5.1 billion apiculture industry, after thousands of colonies were lost over last spring.

North Island beekeepers spanning the Coromandel, Great Barrier, Wairarapa and Taranaki suffered significant losses with some reporting up to 95 percent of adult bees disappearing from hives. However, a lack of reporting to the Ministry for Primary Industries or the Environmental Protection Agency meant there was no certainty about whether the sudden collapses were linked, the New Zealand Apiculture Conference in Taupo heard. . .

Farm debt pressures being surveyed:

Lincoln University researchers want to know how farmers and their families are dealing with being in debt and the stress it can bring.

Bruce Greig, Dr Kevin Old and Dr Peter Nuthall, from the University’s Faculty of Agribusiness and Commerce, are conducting a nationwide survey investigating farm debt and the level of anxiety experienced by farmers who incur it.

Mr Greig says they want to discover how they manage debt as it is one of the many skills farmers require. . .

NZ lambskin, sheepskin face ‘lose-lose’ with over-supply, weak demand – Tina Morrison:

(BusinessDesk) – New Zealand exports of sheepskin and lambskin, at their lowest level in more than four years, are unlikely to recover any time soon as a glut of excess stock and weak demand weigh on prices.

The value of raw sheepskin and lambskin exports fell to $128.6 million in the year through April, the 15th straight decline in annual exports and the lowest level since January 2011, according to Statistics New Zealand data. The latest figures, for May, will be published on Friday. . .

 

Settlement reached over ASB rural interest rate swaps:

The Financial Markets Authority (FMA) has reached a settlement with ASB regarding the sale, promotion and marketing of interest rate swaps to some rural customers.

The Commerce Commission (the Commission) investigated ASB for the sale of interest swaps and reached a separate settlement with ASB in December 2014.

The FMA settlement was reached based on the conclusions from the Commission’s investigation and the FMA’s engagement with ASB in relation to its processes for selling and marketing interest rate swaps to rural customers. . .

 


Rural round-up

May 9, 2015

Low-Cost Pasture-Based Dairying Still Our Best Bet, Say Farm Environment Leaders:

New Zealand dairy farmers shouldn’t lose sight of their competitive advantage, say farm environment ambassadors Mark and Devon Slee, who recently returned from a study tour of the Northern Hemisphere.

In late March the Canterbury dairy farmers and National Winners of the 2014 Ballance Farm Environment Awards embarked on a 25-day trip to the United Kingdom, Netherlands and Ireland, visiting a wide range of dairy farms

Mark says a key aim of the tour, which was facilitated by the New Zealand Farm Environment Trust and supported by a range of industry groups, was to study intensive dairy farming systems in Europe and to find out how farmers were using technology to improve sustainability. . .

Pacing global changes a big ask for Fonterra – Fran O’Sullivan:

Tim Groser’s warning that the dairy sector would effectively have to guts it out during a period of low milk payouts was timely.

It’s perhaps easier said than done maybe from the perspective of a Trade Minister.

But dairy farmers are a resilient lot. They’ve been through cyclical times before.

Yet, last week’s Fonterra announcement that the co-operative has downwardly revised its 2014/2015 payout forecast back to $4.50/kg milk solids (from $4.70) was still a hard knock for those that had factored the higher track into their own financial planning.

Federated Farmers pointed out just how difficult it was for some dairy farmers with their comment that the average Canterbury dairy farmer was now facing a loss of 91c for every kilogram of milk solids that they produced. . .

ANZ Bank was most aggressive in rural rate swaps sales to farmers, ComCom says – Paul McBeth:

(BusinessDesk) – ANZ Bank New Zealand, the country’s biggest lender, was the most aggressive in pitching interest rate swaps to farmers, over which it subsequently agreed to pay $19 million in compensation, the Commerce Commission says.

General counsel competition Mary Anne Borrowdale told Parliament’s primary production select committee that of the three banks to settle with the regulator, ANZ had the most customers involved and was investigated over both the way it was able to move its margin and the break fees it charged farmers for an early release. While ANZ announced its settlement with the regulator before ASB Bank and Westpac Banking Corp, it only just made its offer to farmers yesterday. The three banks’ collective settlements totalled $24.2 million. . .

Landmark animal welfare legislation welcomed by veterinarians:

The New Zealand veterinary profession welcomes today’s landmark passage of the Animal Welfare Amendment Bill which brings greater clarity, transparency and enforceability of the country’s animal welfare laws, further strengthening New Zealand’s excellent reputation for animal welfare.

The New Zealand Veterinary Association (NZVA), which played a key role in helping to shape the Bill, says some of the key changes include the legal recognition of animal sentience, which is sensation or feeling in animals, for the first time in New Zealand law.

NZVA President Dr Steve Merchant says: “Veterinarians are at the vanguard of animal welfare advocacy and public support is behind us in the call for greater clarity on issues concerning animal welfare and increased sanctions for animal cruelty. . .

 

 High prices and volumes for avocado growers:

Avocado exporter Avoco says its growers are celebrating the end of a season where they not only got a bumper crop – but decent prices for their fruit too.

Avoco said strong end-of-season demand from Australia lifted returns for growers – to $15 per tray for large avocados and $14 per tray for smaller fruit.

Avoco director John Carroll said the company exported a record volume of fruit – 4.5 million trays, out of a total 7 million trays – and still managed to get good returns for its 700 plus growers. . .

Anchor Gives More New Zealanders an Organic Milk Choice:

Anchor is making organic milk more accessible to New Zealanders with the nationwide launch of Anchor Organic.

Fonterra Brands New Zealand Managing Director Tim Deane said that with other organic milk brands only available in certain regions or very expensive, Anchor is on a mission to make organic milk more widely available at a fair price.

“We want to put organic milk in reach of more New Zealanders. We’ve done just that through our nationwide distribution and providing Anchor Organic at an everyday price that works out at only about 20 cents extra per glass compared to our standard Anchor milk,” said Mr Deane. . .

Wool Prices Bounce:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that a weaker New Zealand dollar, limited wool volumes pressuring exporters and renewed client interest, combined to lift local prices across the board.

Of the 6,350 bales on offer, 99 percent sold.

The weighted indicator for the main trading currencies was down 1.79 percent compared to the last sale on 30th April.

Mr Dawson advises that Fine Crossbred Full Fleece and longer shears were 7 to 10 percent dearer, stimulated by resurgent Chinese interest with shorter types 3 to 6 percent firmer. . .


Rural round-up

May 3, 2015

Westland Milk building $40m plant in Canterbury –

The West Coast’s dairy co-operative is ramping up its Canterbury presence by building a $40 million plant to make long life milk at Rolleston.

Westland Milk Products has begun building the plant in its first venture into retail-ready liquid milk at the Izone industrial park. The long life product known as UHT milk for its ultra high temperature processing usually has a shelf life of six to nine months and is usually used in hot climates.

Commercial production is scheduled to begin early next year and the plant will be capable of packing more than 50 million litres of UHT milk and cream a year. The product will mainly be sold into China’s UHT market, where returns are high and growth prospects are strong. . .

Farmers borrow $60m for environment projects –  Tim Cronshaw:

Farmers are borrowing big money for environmental projects on their farms with one bank alone lending more than $60 million.

The loans are on top of farmers funding waterway fencing and other projects from farm cashflows and savings.

ASB bank has provided low interest loans for more than 500 farm projects through its Rural Environmental Compliance Loan so farmers can fence, plant trees and put in culverts to keep stock away from streams and do other projects such as meeting their environmental compliance obligations by upgrading or building new effluent ponds.

Farmers have taken out an average loan of $105,000 with the bank. . .

Top Farmers Recognised in This Year’s Ballance Farm Environment Awards:

The 2015 Ballance Farm Environment Awards have produced another exceptional line-up of Supreme winners.

Award ceremonies in the ten regions participating in the annual competition have been completed and Supreme Winners from each region will now contest the highly-prized National Winner title.

Simon Saunders, chairman of the New Zealand Farm Environment Trust (NZFE), says the calibre of entrants in this year’s competition was again very high, making it tough for judges to select the finalists let alone the Supreme Winners. . .

New Zealand Merino and Landcorp fashion new market for ‘carpet’ wool:

New Zealand strong wool, renowned for its use in carpets, is set to become world famous for a new use – on people’s feet.

Danish footwear firm Glerups has signed a two-year deal with The New Zealand Merino Company (NZM) and New Zealand’s largest farming company, Landcorp to exclusively supply New Zealand strong wool for its indoor shoe range.

The “addictive” indoor shoes, renowned for comfort, warmth and durability, are felted in 100% pure natural wool with soft leather soles. They are sold throughout Denmark and in more than 20 countries, including New Zealand (www.glerups.co.nz). . .

HortNZ taking water concerns to govt:

The national horticulture industry body is taking its concerns about an Environment Court ruling on water quality to the Government as it can not afford to go through legal channels, it says.

Horticulture New Zealand is concerned about the court’s decision to uphold an appeal from Ngati Kahungunu, in Hawke’s Bay, against proposed changes to water quality provisions in the regional plan there.

HortNZ natural resources manager Chris Keenan said the court’s interpretation effectively meant the quality of every single water body must be managed in a way which ensured it was maintained or enhanced.

However, that was unworkable because it could be used to challenge any land development for any purpose. . .

Meat giant playing catch-up on antibiotics:

Plans by a major meat producer to stop using human antibiotics in its chickens means it will be playing catch-up with New Zealand, this country’s industry says.

US-based multinational Tyson Foods – one of the world’s largest meat producers – has announced it will stop using human antibiotics in its US chicken flocks raised for meat.

The company’s chief executive Donnie Smith said the company wanted to take similar steps overseas and in other farming operations.

“We’ve also started talking to independent farmers who supply us with cattle and hogs and turkeys about working towards reducing the use of human antibiotics on those farms as well.” . . .

Gold Kiwifruit Exports to Australia up; Green Consistent – Industry to launch its first marketing campaign in Australia:

The export of New Zealand kiwifruit to Australia has begun and is showing signs of the recovery of GOLD Kiwifruit from Psa.

A hot, dry New Zealand summer will see increased volumes of GOLD exported to Australia, however the volume of GREEN New Zealand kiwifruit is forecast to be similar or lower than last year. 2014 saw 285,000 cartons of GOLD exported to Australia and just over 1.35 million cartons of GREEN.

Tony Ponder, the chairperson of New Zealand’s Kiwifruit Product Group (KPG), the body representing kiwifruit exporters to Australia, says production from New Zealand continues to increase, in line with world-wide demand for New Zealand kiwifruit which has lifted significantly over the last three years. . .

NZ Marine Industry Training Organisation undergoes name change:

Reflecting the developing nature of the New Zealand marine industry, the New Zealand Marine Industry Training Organisation has changed its trading name to the New Zealand Marine and Composites Industry Training Organisation.

At the New Zealand Marine Industry Association AGM in March, members decided that a change in the industry training organisation’s name was the best way to reflect its diversified purpose, Since 2007, the ITO has trained skilled members not only for the marine sector, but the composites sector also. . .

 


Rural round-up

April 15, 2014

GM in NZ on farming leader’s agenda – Tony Benny:

A visit to Argentina has left Federated Farmers vice-president Dr William Rolleston even more convinced New Zealand should not close the door on GM agriculture.

“I stood in a field of genetically modified soya beans, amongst hundreds of thousands of acres of genetically modified crops which they are using to have some beneficial effect on their environment but also to ramp up their production,” Rolleston said.

While his support for GM is already well known, Rolleston said he made a point of mentioning the issue in a speech at the North Canterbury branch of Federated Farm-ers’ AGM so that he couldn’t be accused of keeping his views secret should he later became Feds president.

“We need to have a sensible debate,” he said. . .

 

Dairy price ‘worm has turned’ downward – ASB  – Niko Kloetin:

Milk prices are tipped to fall again at tonight’s global dairy auction.

ASB says prices could drop another 10 per cent.

In more bad news for dairy farmers, the bank said the New Zealand dollar could remain high against the United States dollar if the American economy did not improve.

In its Farmshed Economics newsletter, ASB said “the worm has turned” on dairy prices, which are down almost 20 per cent in the past two months.

Driving prices down has been a lift in milk production, which ASB forecasts will increase by 11 per cent this season compared with last season. . .

Secrets to sharemilking success – Gerald Piddock:

James and Melissa Barbour’s strong relationship with their farm owner and staff has propelled the sharemilking couple to the top in their field.

The Waikato Sharemilker/Equity Farmer of the Year winners credit these relationships for their success and place a lot of emphasis on maintaining them.

They 50:50 sharemilk 355 cows for Joan De Renzynts at Matamata. Both are 28 years old, and are in their seventh season and third position 50:50 sharemilking.

They take on board what De Renzy says and work as a team along with assistant Hayden Thompson. . .

Brainstorming conference expected – Yvonne O’Hara:

The possible reintroduction of an industry levy and ”the way forward” for profitability and sustainability for the goat industry will be the focus of the inaugural New Zealand Goats (NZGoats) conference in Queenstown next month.

Mohair New Zealand Inc, Meat Goat New Zealand (MGNZ), the New Zealand Boer Goat Breeders Association and NZGoats will all be holding their annual meetings during the same weekend, May 23 to 25.

NZ Goats chairwoman Dawn Sangster, of Patearoa, said those interested in feral or dairy goats or in the industry in general were also invited. . .

Last few weeks of hard prep for dairy trainee  – Yvonne O’Hara:

It is only a little more than four weeks to go before Josh Lavender, of Lochiel, is up against the nations’ other ”best of the best” dairy trainees, so he is spending as much time as he can preparing.

Mr Lavender (26) won the New Zealand Dairy Industry Awards’ Southland Otago Dairy Trainee of the Year a month ago and since then has combined work as 2IC on a 752-cow property near Lochiel with catching up with study for his Production Management Level 5 through Primary ITO, preparing a DVD and speech for the nationals, and learning as much as he can about the industry. . .

Cloudy Bay’s new vintage redefines Chardonnay:

The winemaking philosophy of Cloudy Bay chardonnay revolves around a very stripped back approach. Juice in the barrel is settled for a very short time without the use of enzyme to retain a high level of solids. Following this is a long indigenous fermentation, taking place in barrel.

“These techniques work together to build complexity of flavour, but more importantly they contribute texture and architecture to the palate,” explains Tim Heath. “It takes our wine beyond simple fruit flavour. It is a wine to watch and speaks of its origin.” . . .


Rural round-up

March 30, 2014

Deutsche Bank keeps ‘sell’ rating on Fonterra, seeks more transparency – Pattrick Smellie:

(BusinessDesk) – Fonterra Cooperative Group needs to make it far clearer to farmers and other investors how its business model operates, says Deutsche Bank after the dairy exporter shored up a slump in half-year profits by intervening in the regulated price it pays for milk at the farm gate.

Deutsche Bank retains its ‘sell’ rating on Fonterra Shareholders Fund units, with a 12-month target price of $5.64. The units slipped 0.2 percent by mid-afternoon to $6.08, and have fallen from a closing price of $6.15 on March 26, when the result for the six months to Jan. 31 was declared.

Fonterra posted a 53 percent fall in first-half net profit to $217 million, a result that would have been far worse if the cooperative had not taken the unprecedented action last December of deciding to reduce the regulated Farm Gate Milk Price (FGMP) to farmer-shareholders by 70 cents per kilogram of milk solids. . . .

New Zealand dairy farmers are responding to high prices by cranking the handle on their production to cash in on record payout – Jeff Smith:

Our dairy farmers are “cranking the handle” on production in response to high prices they are receiving for their milk.

As a result nationwide dairy production is expected to be up by 11% this current season.

Strong dairy prices have “handed the baton” to strong dairy volumes, ASB says in its economic update released today.

Volumes would be higher than normal this year as farmers had bought extra feed to increase milk production in anticipation of higher prices, ASB Bank rural economist Nathan Penny told interest.co.nz today. . . .

Farmer lands $30,000 in prizes – Elliot Parker:

Hard work has its merits.

Hinakura farmer Donald McCreary can attest to this after winning the award for the Beef and Lamb Wairarapa Farm Business of the Year and in the process scoring himself $30,000 in prizes.

McCleary has been farming in Hinakura, east of Martinborough, since 2004 on a 1375 ha property which is predominantly steep, hill country.

The property contains 6700 ewes and 225 breeding cattle.

McCreary says his approach to good farming is to be well versed in all areas of farm management. . .

Meat industry on the rise – Carmen Hall:

Higher lambing percentages and export carcass weights are helping offset a dramatic drop in sheep numbers.

Numbers have almost halved since 1991, but the amount of product being exported has remained stable as farmers focus on improving their systems.

Negative publicity has overshadowed the fact farmers have made significant gains in productivity and the industry has the potential to cash in on future growth, industry leaders are saying. Beef and Lamb New Zealand chief executive Scott Champion says the organisation focused on “best practice behind the farm gate”. . .

Finance support adds up for farmers :

Tauranga HR company Teaming Up hopes to connect accountancy firms with farmers in an economic development project that could generate millions of dollars.

The company spearheaded the Beyond Reasonable Drought inaugural road shows in the Bay of Plenty and East Coast last month, which attracted nearly 1000 people.

Marlborough sheep and beef farmer Doug Avery, who was on the brink of disaster 15 years ago after consecutive droughts, presented the seminars. He overcame adversity by adopting a scientific approach to agriculture and introducing deep-rooted, drought-tolerant lucerne. He employs six full-time staff, including son Frazer, and his business is a profitable operation that promotes high-reward, low-impact farming. . .

Honey lovers could get stung:

Honey prices could rise as much as 20 percent due to one of the worst seasons in decades.

Beekeepers say lower than usual temperatures in January meant the insects stayed inside their hives during the peak season and produced less honey. . .


Rural round-up

March 29, 2014

Land leasing lessons – Rebecca Harper:

Getting started farming in your own right can be a challenge and leasing is a great first option. Rebecca Harper investigates how it works and what you need to know about leasing.

David Skiffington has five lease blocks and has developed his own philosophy and system for leasing, building up to a viable farm business for him and his young family.

He got his first lease block in 2008 and is now leasing land from four Maori trusts and one private landowner in Manawatu, with about 100 hectares all up.

David is dead set against paying market price for a block. “I feel like the market rate is often set by the guy next door who has an advantage. Market price is set at a price where not much is economic.” . . .

Dairy prices may dip as record payouts prompt farmers to boost milk production

(BusinessDesk) – Dairy prices will probably decline over the last few months of the New Zealand season as farmers ramp up milk production to benefit from record payouts.

Prices generally hold up on lower volumes heading into the end of the season in May, however volumes will be higher than normal this year as farmers had favourable growing conditions in the lead-up to the main producing season and bought extra feed to increase milk production in anticipation of higher prices, said ASB Bank rural economist Nathan Penny.

Auckland-based Fonterra Cooperative Group, the world’s biggest dairy exporter, last month raised its payout to farmer suppliers to a record level on the back of strong global demand. New Zealand dairy farmers will probably produce 11 percent more milk this season than last season, which will equate to around a 9 to 10 percent increase in volume for Fonterra, ahead of the dairy group’s forecast for a 7.5 percent increase in volume, ASB says. . .

Bovine Blackmailers and half a kennel – Mad Bush Farm:

The cows know I have a bag of feed just inside the door right now. It’s not theirs to have of course; it belongs to the old man. Sometimes, though, I do give them some of it, even though right now they don’t really need feeding much more than some hay.  Trouble is they’ve cottoned on that I feed the old man twice a day. They have it all figured out, along with how to muck up my recently cleaned windows (forget that now!) . . .

Apples and applesauce – Cabbage Tree Farm:

It’s apple season here on CTF. I am steadily working my way through mountains of apples. OK ‘mountains’ might be a slight exaggeration, but there are certainly quite a few kilos!
Here is a big box of delicious ‘Reinette du Canada’ apples – a French heirloom apple – that I picked yesterday. This variety is great for cooking, but it can also be eaten as a dessert apple. We usually cook it.


Some of these apples get quite big. The biggest one I picked was 500g (18 oz)! . . . 

Good as green for top crop:

A Bay of Plenty kiwifruit orchard has posted a top orchard gate return based on its production of Hayward green in the 2013 season.

Last season it produced an average of 15,109 trays per hectare with size 33 fruit, with an orchard gate return (OGR) in excess of $90,000 compared to the industry average of $43,000. It was the highest OGR recorded for 2013 by the orchard’s management company, Direct Management Services (DMS).

The orchard is owned by the Owen St George Family Trust and managed by Matt Greenbank of DMS. Owen’s daughter, Jackie, also works on the orchard.. . .

Hastings centre stage for next Regional Final:

The East Coast Regional Final of the ANZ Young Farmer Contest is set to be held in Hastings next weekend Saturday 5th April at the Hawke’s Bay A&P Showgrounds.

Eight finalists are contending for a spot at the Grand Final in Christchurch 3-5 July and their share of a $14,000 prize pack including products, services and scholarships from ANZ, Lincoln University, Silver Fern Farms, AGMARDT, Ravensdown, Honda, Husqvarna and Vodafone.

There is a wide range of competitors for this round of eliminations, with a variety of backgrounds, ages and skill sets. . . .

Value Added Products Get First Taste of Tomato Crop:

Wattie’s value added products are the first to benefit from the company’s 77th annual tomato crop, which is just passed the mid-point of the harvest.

In producing the country largest tomato crop Wattie’s carefully selects tomato varieties to meet and thrive in the Hawke’s Bay climate.

Wattie’s agronomist Jonny La Trobe who is responsible for the tomato crop, says the season is going well, and with half the harvest completed, the fruit quality and yields are good.

“While we may not pip last year’s exceptional volumes, favourable spring weather – which also benefited our peach crop – gave us an excellent start on which to build.” . . .


Rural round-up

December 28, 2013

Huge solar power system to milk cows – Gerald Piddock:

Hugh and Sue Chisholm are turning to solar power to help run a more sustainable dairy business.

The Putaruru farmers are installing one of the country’s largest solar powered systems ever to be used on a dairy farm on their dairy shed near Putaruru.

The 28kW photovoltaic (PV) system has 112 solar panels on the roof of the Chisholm’s 64-bale rotary shed as well as two Fronius IG 150 V3 inverters.

Chisholm said the capital cost of the system was a smart investment, and part of an improvement plan for their farm. . .

Sharemilkers not bad people, just bad bosses – Jon Morgan:

Immigration adviser Lyn Sparks is blaming a rise in corporate-owned dairy farms for an increase in workers’ complaints about poor working conditions.

The Christchurch-based adviser says the biggest offenders are some corporate-owned farms run by sharemilkers.

However, he believes there are more good employers than bad in dairying.

“The bad ones are not bad people,” he says. “They just don’t know how to manage.”

But a contract milker says there are just as many bad employees in dairying as bad employers. . .

Sorry tale of swaps no one understood – Fiona Rotherham:

It has been a victory – of sorts – for farmers with the Commerce Commission last week saying it intended filing court action next March against the ANZ, ASB and Westpac banks for “misrepresenting” the sale of interest rate swap loans to rural customers.

I say a victory of sorts because there’s a lot of water under the bridge yet to get compensation for farmers, some of whom ended up more heavily indebted and losing their land.

Sold between 2005 and 2008, interest rate swaps were marketed to farmers as a way to beat rising interest rates. When the global financial crisis hit in 2008 farmers with swaps saw the interest they were paying rise when rates were falling rapidly elsewhere. The banks charged huge break fees for those wanting to exit the swaps. . . .

Bank claims farmer swaps compo call ‘too late’ – Rob Stock:

ANZ says the three-year limitation period has passed under the Fair Trading Act for the Commerce Commission to obtain compensation for farmers who were mis-sold interest rate swaps.

That, the bank warned, meant the commission “will now have to attempt a novel and uncharted method to obtain compensation if it takes the court route.”

The bank’s written statement comes in the wake of the news last week that the commission would launch legal action next March under the Act against ANZ, Westpac and ASB for the sale of the swaps between 2005 and 2008. It is also investigating another bank, not yet named, that also sold swaps and may be joined to the action. . .

Postie’s long run of deliveries nears an end – Lauren Hayes:

After 53 years, millions of kilometres, thousands of early mornings and an unthinkable amount of petrol, a Winton postie is calling it a day.

At 21, Ray Cosgrove used his savings to buy into a Central Southland rural delivery run, and began loading letters into a Hansa station wagon. The Hansa might be long gone and the delivery route altered but, more than half a century later, Mr Cosgrove and his wife, Debbie, are still delivering mail to rural Southlanders.

Mr Cosgrove bought the rural run in September 1960 and stepping into the role was not as easy as many people, including the urban posties, often thought, he said. . .

Year in review – March – Rebecca Harper:

The drought was really hurting rural communities and the bill started to mount for the primary sector with drought declarations coming thick and fast. The entire North Island was eventually declared as being in drought along with the West Coast of the South Island. Dairy production took a hit and the first talk about a merger between the two largest meat co-operatives, Alliance and Silver Fern Farms, started, as farmers looked for the causes of low lamb prices.

This was quickly followed by a call from the newly-formed Meat Industry Excellence Group, a group of lower South Island farmers, for meat-sector consolidation. A meeting in Gore to gauge support and discuss possible reform of the red meat industry attracted 1000 farmers and Alliance chairman Owen Poole put the cost of consolidation at $600 million. . .


Com Com taking action on swaps

December 17, 2013

The Commerce Commission is to issue proceedings on interest rate swaps.

The Commerce Commission confirms that it has advised three major New Zealand banks, ANZ, ASB and Westpac, that it intends to issue legal proceedings over their sales of interest rate swap contracts to rural customers.

The Commission has advised the banks that in its view there is sufficient evidence that they may have breached sections 9, 11 and/ or 13 of the Fair Trading Act, and that it wishes to place the matter before the Court for its decision.

Commerce Commission Chairman Dr Mark Berry says the Commission aims to file proceedings in March 2014.

“This has been a very extensive and complex investigation, but that phase of it is almost at an end. We have advised the banks of our views that swaps were misrepresented to rural customers. I expect to have more talks with the banks about these views, and about the different facts that might apply to each of them, over the coming months,” said Dr Berry.

“Because court proceedings are in prospect, the Commission will not be commenting further at this time.”

The Commission is also considering the conduct of other institutions that have sold interest rate swaps.

The Commission encourages affected swap customers to contact the Commission on 0800 943 600.

Interest rate swaps are a financial derivative product that allows a borrower to manage the interest rate exposure on their borrowing.

Interest rate swaps were typically provided to large corporate and institutional customers, but from 2005 were offered by various banks to rural customers throughout New Zealand.

In August 2012 the Commission began enquiring into whether interest rate swaps were misleadingly marketed from 2005.

Federated Farmers welcomes the news:

“Having fielded calls from concerned farmers over recent years, we formally wrote to the Commerce Commission in November 2012 requesting that they look into the selling of interest rate swaps,” says Bruce Wills, Federated Farmers President.

“Now we have the news that the Commission has found there is a case to be answered under the Fair Trading Act.  Legal proceedings are to be filed in the New Year against ANZ Bank, ASB and Westpac.

“Some of the debt instruments sold to farmers have been highly complicated to say the least.  In both 2009 and 2010, we mentioned problems with swaps in various submissions, including to the Opposition’s Banking Inquiry and the Review of the Banking Code of Practice.

“This was why we felt the Commerce Commission was best placed to properly investigate them and its decision today vindicates this faith.

“The Commission looked at swaps from the perspective of the Fair Trading Act 1986.  This includes misleading and deceptive conduct in trade such as false and misleading representations.

“In this case the Commission is looking at potential breaches of sections 9, 11 and/or 13.

“Federated Farmers supports the Commerce Commission in wanting to hear from farmers adversely affected by swaps.  They can contact the Commission on 0800 943 600.

“We believe the case, when it comes before the Courts, will help to resolve what has been controversial to say the least.  It will also be a good opportunity to remind the entire financial industry of its wider obligations,” Mr Wills concluded.

NBR reports that about $8 billion of rural swaps loans were made.

They were sold without full information being given to customers, at least some of whom felt pressured to take them.

A lot of farmers lost a lot of money with swaps and some lost their farms.


Rural round-up

July 14, 2013

Global forces need smart response – Sally Brooker:

New Zealand dairy farmers and milk processors need robust business structures to withstand market movements, Hayley Moynihan says.

Delivering a keynote address at the South Island Dairy Event in Lincoln on June 24, the Rabobank food and agribusiness research and advisory senior dairy analyst said milk price volatility was not going away. We needed to aspire to where there was opportunity to enter more lucrative markets.

Rising consumer expectations were presenting a continuing challenge, Ms Moynihan said.  . . .

Waikato farmers set the record for Agrecovery:

Federated Farmers is applauding the way Waikato farmers have embraced Agrecovery rural recycling. A record six tonne of hazardous horticultural, agricultural and veterinary chemicals was collected during the Waikato regional collection, finishing last week.

“Farmers are choosing to dispose of their chemical waste responsibly due to the convenience of the service,” says James Houghton, Federated Farmers’ Waikato provincial president.

“It is great to see increasing numbers of farmers using Agrecovery. It is another example of farmers changing their behaviour and working for the good of the environment without the need for legislation. . .

Warm, wet weather inhibits rabbits – Ruth Grundy:

Wet and warm springs and summers are keeping rabbit numbers down across Canterbury.

Environment Canterbury biosecurity team leader Brent Glentworth said for the past two seasons warm, wet weather during the first rabbit breeding cycle had been largely responsible for keeping the population in check.

Young rabbits had a low survival rate in those conditions because they succumbed to pneumonia or coccidiosis – a liver disease ”very prevalent” in warm, wet weather, Mr Glentworth said. . .

Mounting cost to irrigation schemes – Ruth Grndy:

Irrigation companies in the Waitaki river catchment are facing significant clean up bills after last month’s flooding damaged irrigation schemes.

Waitaki residents say the rain and flooding from the storm which lashed the country was the worst seen in decades.

The Danseys Pass bridge was destroyed after about 160mm of rain fell in the space of three days.

Maerewhenua District Water Resource Company chairman Kelvin Weir said the scheme had been ”very lucky” and ”survived pretty well” considering the amount of rain and high river flow. . . .

Irrigation extending potato, onion output – Ruth Grundy:

Easier access to water in Canterbury is not only fuelling dairying production but also a significant growth in the production of potatoes and onions.

The 2012 agricultural production census, conducted by the Department of Statistics, shows the Canterbury potato harvest accounted for half the national harvested area in June 2012.

And, the land put into onions increased from 690ha in June 2007 to 1040ha in June 2012 – about a 50% increase. . .

New ASB sponsorship will improve financial literacy of dairying women:

ASB has confirmed it is a new gold sponsor of the Dairy Women’s Network (DWN). The partnership, which took effect on 1 July, will boost the work already being done by the DWN to improve the financial literacy skills of the country’s dairy farming women.

DairyNZ modelling shows there is an opportunity to improve the industry’s profitability by more than $1B per year, or approximately $1000 per hectare, by improving financial literacy and management capabilities.

The industry body has also identified there is a significant range in profitability between dairy farmers, with a contributing factor being management capability. . .


$2.2b Christmas present

December 24, 2009

The four banks – ANZ, ASB, BNZ, Westpac-  which were judged to be in debt to Inland Revenue have agreed to pay $2.2b.

That’s a very pleasant turn around from most of the news stories of the year which have recorded falling tax revenue in the wake of the recession.

Just the Christmas present Finance Minsiter Bill English needs.


Queenstown Lakes most affluent

December 4, 2008

 

If affluence counts then Queenstown Lakes is the jewel in New Zealand’s crown.

This was the finding of Stephen Hart in a study commissioned by the ASB.

We looked at the average sale prices of residential homes in over 70 territorial authorities from all over New Zealand.  We then took the top 20 highest priced places and dug beneath the surface to see how they stacked up in the affluence stakes.

We didn’t just consider house prices; we also examined:

* Households earning more than $100,000 a year.

* Homes least likely to be in deprived areas.

* Percentage of residents who have a degree.

* Lowest unemployment rates.

* Residents who are Chief Executives, General Managers or Legislators.

Points were awarded based on performance across each of these criteria, then added up to create a league table of New Zealand’s Most Affluent Places.

And the winner was Queenstown Lakes. 

That’s not just the town of Queenstown, it’s the whole district which includes Arrowtown, Wanaka and Hawea and all the land in between including farms, ski fields and wineries.

Queenstown Lakes scored well against all of the set criteria, especially in terms of jobs; its unemployment rate of 1.7% was lower than any of the other contenders.

All places have some degree of socioeconomic deprivation, it’s measured in deciles with 1 being the least deprived and 10 being the most deprived.  On average 30% of New Zealanders live in deciles 1 to 3.  Not so in Queenstown where more than two-thirds of residents live in the top three deciles.

Back on the jobs front; Queenstowners are a well qualified bunch with 19% possessing a Bachelor’s degree or higher, the fourth highest in the country.  Queenstown also came fourth in terms of its percentage of population who are in the top occupation category of Chief Executive, General Managers and Legislators, only surpassed by Rodney District, Auckland and North Shore Cities.

It’s hard to know which is the cause and which is the effect but higher property prices can only be afforded by people on higher incomes and people on higher incomes can afford higher prices.

The top 20 most affluent places were: 

1

Queenstown Lakes District

2

North Shore City

3=

Wellington City

3=

Auckland City

5

Rodney District

6

Selwyn District

7

Franklin District

8

Porirua District

9

Manuaku District

10

Tauranga District

11

Tasman District

12

Central Otago District

13

Waitakere City

14

Kapiti Coast District

15

Thames Coromandel District

16

South Wairarapa District

17

Lower Hutt City

18

Taupo City

19

Christchurch City

20

Nelson City


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