Fonterra – who loves ya baby? – Tim Hunter:
It’s so ironic. Fonterra [NZX: FCG], whose sole reason for being is to benefit its co-operative members, is so distrusted by them that it must have a Shareholders Council to oversee its board, even though the board is already completely controlled by shareholders.
The co-op is so successful it is the world’s largest processor of milk and the world’s biggest dairy exporter, yet its shareholders complain that its head office is not in a provincial town, even though there are barely any international flights from provincial airports.
Meanwhile, the business has become so economically important to New Zealand that non-shareholders argue Fonterra is too focused on processing milk and should be more like Nestle, which sells a lot of coffee, chocolate and instant noodles (although it probably doesn’t want to talk about noodles right now). . .
Tight times for sharemilkers – Hugh Stringleman:
Most sharemilkers will be unable to write a break-even budget for the new dairy season and face several months of negative cash flows before dairy prices are expected to recover.
That is the market reality facing all dairy farmers, but especially taxing for sharemilkers of all descriptions given the low milk prices, incomes in the $1 to $2/kg range, and the lack of discretionary or deferrable spending.
Industry-wide, considerably more seasonal finance will be necessary because herd-owning sharemilkers (40-50% contracts) face losses between 30c and 50c/kg on all milk produced for the remainder of 2015. . .
Survey captures cost of compliance – Richard Rennie:
Waikato dairy farmers have invested about $400 million in environmental compliance in recent years, but are uncertain about how long that investment will remain compliant.
New Zealand National Agricultural Fieldays scholar Thomas Macdonald has just issued findings from a survey he conducted on Waikato dairy farmers, determining how much they have invested in effluent management and compliant farm systems. . .
AgResearch hub remodelled for Lincoln – Tim Cronshaw:
AgResearch’s soon to be built science hub programme will look much different from the operation first envisaged, writes Tim Cronshaw.
AgResearch is about to put out new master plans as more science and agriculture partners join its vision for innovation clusters at its main Lincoln and Palmerston North hubs in a nationwide $100 million restructuring programme.
Originally the research organisation was going to build its science centre for its Future Footprint programme on new ground connecting to the Lincoln University campus with the wider Crown Research Institute precinct.
Townie helps out – Annette Scott:
Christchurch businessman Grant Silvester launched a campaign earlier this month to help get feed to North Canterbury farms.
He has been thrilled at the amazing support the campaign has attracted and is more than confident of trucking in his goal of 500 bales of feed to the region.
Silvester, a self-described townie who sells cars and racing car parts from his Christchurch-based business, had seen how dry farms were while travelling through the area. . .
Firm friendship: The sports star and the girl inventor – Narelle Henson:
It’s easy to see young inventer Ayla Hutchinson and her mentor, Bernice Mene are mates – even though they clearly have pretty different backgrounds.
Mene is a national figure, accomplished in the world of sport, Ayla is a teen inventor from the fields of Taranaki; introverted, inexperienced and – by her own admission – a little anxious.
Fifteen-year-old Ayla is the inventor of the Kindling Cracker, a wood-splitting device taking New Zealand by storm. She’s just signed “a massive” supply deal with major American corporate, Northern Tools + Equipment. The second 12-metre container of orders needs to be sent soon, but New Zealand demand keeps emptying it. She’s constantly being badgered with interview requests, and everywhere she goes people just keep asking how she came up with that invention. . .