Rural round-up

June 28, 2016

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

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

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

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

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

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

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

New cuts help keep venison on menus:

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

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

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

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

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

War on Weeds Dirty Dozen revealed:

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

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

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

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

Stricter rules for quarantine facilities:

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

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

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

Tegal crows over year of plump sales:

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

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

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


Rural round-up

November 2, 2015

Dairy prices, lamb returns drive optimism – Dene Mackenzie:

Some encouraging signs have emerged from the latest ASB Farmshed Economics report with dairy markets moving back towards normal and lamb a quiet achiever.

ASB chief economist Nick Tuffley said dairy farmers had reined in production to better reflect current demand, reducing oversupply.

Dairy prices reflected the better balance. Overall prices had lifted more than 50% and whole milk prices more than 70% since August. However, supply and prices still had more work to do. . . 

Prestigious Nuffield scholars for 2016 named – Gerard Hutching:

Four young primary sector leaders have been awarded prestigious Nuffield scholarships.

In the 60 years since the scholarship programme began, more than 140 New Zealanders have been handed the opportunity to travel and study at first-hand the latest international primary sector developments.

The scholars for 2016 are Wellington-based government agriculture development manager Jessica Bensemann, Te Puke dairy farmer Richard Fowler, environmental management adviser turned Central Hawke’s Bay shepherd Samuel Lang and orchard and sheep and beef farm owner Tom Skerman, from Hastings. . . 

Fonterra reaped 25% gain from Bega shares driven to record by Blackmores tie-up – Jonathan Underhill:

(BusinessDesk) – Fonterra Cooperative Group reaped a 25 percent gross gain on its two-year investment in Australia’s Bega Cheese shares, which jumped to a record last week after announcing a partnership with Blackmores that will compete with the New Zealand dairy exporter in China’s infant formula market.

Fonterra spent about A$60.7 million to build a 9 percent stake in Bega in November 2013, which it sold last week for A$74 million. It also received about A$1.6 million of dividends. Fonterra is in the process of transforming its Australian business, having taken a $108 million writedown of its yoghurt and dairy desserts assets across the Tasman in 2015. The gain on the Bega shares compares to a 5 percent return on capital from its Oceania consumer and food service business in 2015.

The sale wouldn’t affect Fonterra’s commercial relationship with Bega, which includes a licence on the Bega brand and a supply contract for cheese, said chief financial officer Lukas Paravicini. The sale was the best use of the capital, he said. . . .

Could drones, apps and electrical tape measures feature in the future of the horticultural industry?:

Kiwi ingenuity is alive and well and at its cutting edge best in the local horticultural industry as some startlingly innovative ideas – featuring everything from apps to drones – have begun to emerge from the innovation leg of this year’s Young Horticulturist of the Year Competition’.

The finalists, five young men and one woman, come from all over New Zealand – all winners of their individual sector competitions – and are going head to head to decide who will be named ‘Young Horticulturist of the Year 2015’ after the grand final, which is held over the two days of November 11 and 12 at the Auckland Botanic Gardens in Manurewa. . . .

Voting for the 2015 Fonterra Elections Underway:

Voting is now open for the 2015 Fonterra Board of Directors’ Elections and the Shareholders’ Councillor Elections in four wards.

This year there are six candidates standing for the Board of Directors. They are Murray Beach, Greg Maughan, Blue Read, Nicola Shadbolt, Ashley Waugh and John Wilson.

Fonterra shareholders have the opportunity to meet and ask questions of the Director candidates at the eleven Directors’ Election Candidate Roadshow meetings which run from Sunday, 8 November to Friday, 13 November 2015. . . .

Increased rebate for DMS’ growers:

Bay of Plenty Kiwifruit management company, DMS, has announced it has increased its shareholder rebate for the 2015/2016 year by 10 cents to 30 cents for Grower shareholders, an increase that is attributed to increased profitability of the business.

DMS is a Bay of Plenty owned and operated orchard management and post-harvest operator, with two major packhouse sites in Te Puke and Te Puna.

DMS Director, Craig Greenlees, says the rebate increase demonstrates the recent growth enjoyed by DMS, plus implementing strategies that focuses on fruit quality from orchard management to packing. . . 

Conservation Week 2015: Healthy Nature, Healthy People:

Conservation Week 2015 is a chance to get active outdoors and look after New Zealand’s natural world, Conservation Minister Maggie Barry says.

“The theme for 2015 is ‘Healthy Nature, Healthy People’ and it’s about the link between looking after our special natural places and the tangible health benefits you can enjoy from experiencing them.”

“We want New Zealanders to get out into our conservation land, whether it’s for exercise, relaxation, getting away from it all or helping out with one of the hundreds of different groups doing great work to protect our natural heritage.” . . .


Rural round-up

November 2, 2013

Fonterra on notice – Hugh Stringleman:

Fonterra is on notice from its leading independent director, Sir Ralph Norris, that another food safety scare would have serious global implications.

While it may be inaccurate and unfair, Fonterra is saddled with the melamine adulteration in China in 2008 and the DCD fertiliser concerns earlier this year, followed by the precautionary recall because of a botulism scare in August.

“That means it is important for Fonterra to learn from the whey protein concentrate events. The fact that the botulism scare was a false alarm doesn’t diminish the work of (our) inquiry,” Norris said. . .

Focus goes on communication – Alan Williams:

Fonterra’s communications team is being renewed as public relations contractor Baldwin Boyle Group (BBG) makes way for more in-house employees.

Five of the 33 recommendations made by the independent inquiry for the board concerning the botulism scare in whey protein concentrate are aimed at better communication.

The first recommendation is that Fonterra needs to continue building a directly employed, strong, specialist, and experienced communications team.

That should be done in key global markets, supplemented with contracted, high-calibre local expertise where appropriate. . .

Tough year for tulip grower – Alison Rudd:

Spring brings magnificent swathes of colour to Southland as hundreds of hectares of tulips bloom. But for tulip producers, the flowers are a byproduct and the real value of the plant lies in its bulb. Reporter Allison Rudd talks to one of the van Eeden family about the changing industry.

For many decades, van Eeden Tulips was the only tulip bulb producer in New Zealand of any significance.

For 45 years, it supplied most of the bulbs grown by commercial flower growers, home gardeners and council parks and reserves departments, before branching out into exports in the late 1990s. . . .

More Southland dairy farms expected – Terri Russell:

Low sheep returns and high milk prices have contributed to a rise in dairy farm conversions in Southland.

New dairy farm conversions totalled just seven for the 18-month period to July. But a recent spike in new conversions comes after Fonterra announced its record forecast payout of $8.30 per kilogram.

Environment Southland consents manager Stephen West said there had been more dairy farm conversion applications in the past four months than there had been in almost two years.

The surge in conversion numbers also coincides with the plan change 13 deliberations drawing to a close.

Plan change 13 has required all new dairy farms to obtain a resource consent before becoming operational since April last year, and the decision on whether the rule will become permanent will be made in December. . . .

No dividend, but Alliance’s system sorted – Sally Brooker:

Shareholders who packed out the Alliance Group Ltd roadshow meeting in Oamaru last week were told they are not getting a dividend.

Chairman Murray Taggart, an Oxford farmer who has taken over since Owen Poole retired on September 30, said times had been ”tough for meat processors and exporters”.

The equity ratio and operating cash flow were good, but not sufficient for a dividend. . .

Fonterra Acquires Stake in Bega Cheese Ltd:

Fonterra Co-operative Group Limited has acquired a 6 per cent shareholding in Australian dairy company Bega Cheese Limited.

The 9.3 million shares were purchased at AUD4.95 per share for a total cost of AUD46 million.

Fonterra Chief Executive Theo Spierings said, “Australia is an important market for Fonterra, and we are committed to growing our already strong presence.

“There has recently been a lot of consolidation activity in the Australian dairy industry. It is important that Fonterra participates, and we have confidence in Bega and the strategy it is pursuing,” said Mr Spierings. . .

Foreign investors buy more South Island farmland:

The Overseas Investment Office (OIO) has approved the application by a Singaporean investment management company to buy half the shares of New Zealand Pastures Limited, a locally-owned company that operates seven South Island sheep and beef farms.

The farms :Three Rivers, Grantham Springs, Hitchin Hills, Quailburn, Hills Creek, The Styx and Huntleigh, cover almost 23,500 hectares.

Singapore company Duxton Asset Management is buying the shares on behalf of itself and two other overseas investment funds. . . .

Stalwart’s last stand gets support of mates – Ruth Grundy:

When his mates got wind John Hough was making his ”last stand”, they thought they would go along for the ride.

The Rakaia shearer and Shearing Sports New Zealand official who will only admit to being ”not 70 yet” began shearing at 18 and first competed in open-class shearing 40 years ago. . . .

#gigatownoamaru appreciates its rural hinterland.


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