Rural round-up

15/05/2019

Tip Top sale half of debt target – Hugh Stringleman:

The sale of Tip Top to a joint-venture northern hemisphere company, Froneri, for $380 million has achieved almost half of Fonterra’s debt reduction target.

When its Beingmate shareholding is divested and a half share of DFE Pharma is sold, Fonterra should reach its $800m reduction target by July 31.

The Beingmate stake has a market value of about $280m and the DFE share about $200m, based on annual sales figures.

Chief executive Miles Hurrell has therefore made a good start on promised financial reforms of substantial debt reduction, cuts in capital and operational expenditure and 7%-plus return on capital invested by farmer-shareholders and unit holders. . . 

Gisborne woman takes out SI Sheep Dog trials event:

Gisborne’s Jo Waugh has won the zig zag hunt at the South Island sheep dog trial championships, the first time a woman has won the event in more than 100 years.

And not only did the 30-year-old and her huntaway dog, Guy, get on the podium, but two other women also joined her in the top seven, clocking up another achievement in the usually male-dominated event.

The South Island Sheep Dog trials were held in Hanmer Springs this week but farmers and shepherds have been competing since the sport first landed in New Zealand in the 1800s. . . 

MIE man changed priorities fast – Neal Wallace:

Richard Young was elected to the Silver Fern Farms board on a platform of industry restructuring and agitating for a merger with Alliance. Six years later the Otago farmer is the co-operative’s boss. He talks to Neal Wallace.

Richard Young vividly remembers the induction for new directors the evening before his first meeting as an elected member of the Silver Fern Farms board.

It was 2013 and the newly elected directors were taken through the co-operative’s accounts ahead of the annual meeting the next day.

It was not pretty. . . 

Tiny farm run on ethical principles– Sally Brooker:

An Alma family is proud to have set up the district’s smallest dairy farm.

Bethan and Bryan Moore have a herd of just 13 Ayrshire cows with calves on 6ha alongside State Highway 1. They will soon be selling milk in glass bottles.

The Moores bought the land about 18 months ago, after four years of sharemilking in Tasmania. Mrs Moore grew up near Cardiff, Wales and met Mr Moore, a farmer from the North Island, on her travels to New Zealand. . . 

Seeka cuts earnings forecast on smaller crop – Gavin Evans:

(BusinessDesk) – Kiwifruit grower and marketer Seeka has cut its full-year earnings guidance by $4 million due to reduced harvests in both New Zealand and Australia.

Group earnings before interest, tax, depreciation and amortisation are likely to range from $32.5 million to $33.5 million in the 2019 calendar year, down from the $36.5-$37.5 million range the Te Puke-based company signalled a month ago.

Seeka, the biggest kiwifruit producer in New Zealand and Australia, said unseasonably hot, dry weather in both countries has reduced fruit size and crop volumes. . .

Meeting of Otago Drought Group – Sally Rae:

The work of the Otago Drought Group is a great example of farmers and their organisations collaborating to manage climate challenges locally, Agriculture and Rural Communities Minister Damien O’Connor says.

The group met again this week to update its discussions on the dry conditions in the Clutha district, how farmers were faring and what actions might be needed.

The group, which included Otago Regional Council chairman Stephen Woodhead, representatives from Beef + Lamb New Zealand, DairyNZ, Federated Farmers, the Otago Rural Support Trust and the Ministry for Primary Industries, convened early in any adverse weather event. . . 

Flying Pig cafe going to market:

One of the Waitaki district’s most recognisable restaurants is on the market.

The Flying Pig Cafe, with its distinctive porcine pink exterior, has long been a landmark in Duntroon.

It has been closed since illness befell its owners in early 2017, and is now for sale.

An Auckland couple bought the cafe in 2007 after discovering it during a holiday driving around the South Island. Business began to soar after the Alps 2 Ocean cycle trail opened in 2014. . . 

Hi-tech boosts growers’ bottom lines:

“Incredibly clever” technology that elevates cool rooms into a state-of-the-art controlled atmosphere chambers is helping Hawke’s Bay’s growers make the very best of their crops.

It is not just about chilling fruit, it is about controlling the air conditions inside the cooler to hold it in the best possible state until market conditions are optimal; which could be any time over the 12 months after the crop has been picked.

Next week, growers have the opportunity to learn more about that technology from the Europeans who make it. . . 


Rural round-up

06/12/2018

Dairy product prices climb as whole milk powder gains – Margaret Dietz:

(BusinessDesk) – Dairy product prices rose at the Global Dairy Trade auction, stemming a decline that began in May.

The GDT price index gained 2.2 percent from the previous auction two weeks ago. The average price was a US$2,819 a tonne, compared with US$2,727 a tonne two weeks ago. Some 36,450 tonnes of product was sold, down from 42,966 tonnes two weeks ago.

Whole milk powder climbed 2.5 percent to US$2,667 a tonne. . . 

Dairy bosses are best employers:

In the first-ever Primary Industries Good Employer Awards dairy farmers Ben and Nicky Allomes won the top accolade, the Minister of Agriculture’s Award for Best Primary Sector Employers.

Woodville dairy farmers Ben and Nicky Allomes have been named the Best Primary Sector Employers. 

The couple, who own Hopelands Dairies, also won the Innovative Employment Practices award. . . 

Fonterra reaches provisional deal with Beingmate:

Fonterra Cooperative Group has reached a provisional deal with Chinese partner Beingmate Baby & Child Food to unwind their Darnum joint venture in Australia.

The joint venture – 51 percent owned by Beingmate and 49 percent Fonterra – produced infant formula products at the Darnum plant in Australia for Beingmate’s Chinese customers, and was a key component of Fonterra’s plan to expand its reach into China’s second and third-tier cities. . . 

Voting for the 2nd Fonterra Directors’ Election is underway:

Voting is now open for the 2018 Fonterra Board of Directors’ Second Election.

Only two candidates from the first election, Leonie Guiney and Peter McBride, obtained more than 50% support from voting shareholders. The Rules of the first election state that if not enough candidates obtain more than 50% support, there must be a second election. . . 

Dairy loan done on a handshake, details to follow:

It beggars belief that the Government has dispensed a $9.9 million low-interest loan to a dairy company without having finalised the terms, National’s Economic and Regional Development spokesperson Paul Goldsmith says.

“The Minister in charge of the Provincial Growth Fund couldn’t tell the House what terms he had in mind when he undercut commercial lenders to provide debt funding for a new processing plant.

“I wouldn’t blame any business like Westland Milk for accepting a cheap loan from a secure lender. . . 

Apple producer’s underlying profit looks to be at top end:

Apple producer Scales has had a bumper year with a record export crop lifting profits to the top end of guidance.

The company’s underlying profit was likely to be at the top end, or slightly exceed, the current guidance range of $58 million to $65m, in the year ending December.

Managing director Andy Borland said it was an excellent performance for the group, with all business units performing well over the year. . . 

New Landcorp chair appointed:

Dr Warren Parker has been appointed as Director and Chair of Landcorp, the Minister of Finance Grant Robertson and Associate Minister of State-Owned Enterprises Shane Jones announced today.

Dr Parker is a former Chief Executive of Scion (the NZ Forest Research Institute) and Landcare Research, and was previously Chief Operating Officer of AgResearch. He currently holds a number of board roles including on Predator Free 2050 Ltd, Farmlands Cooperative Society, Genomics Aotearoa and is the Chair of the Forestry Ministerial Advisory Group. Until recently he was Chair of the New Zealand Conservation Authority. . . 

Landcorp out of touch with real farmers:

Landcorp’s submission to Sir Michael Cullen’s Tax Working Group (TWG) is a kick in the guts to rural communities, National’s Nathan Guy and David Carter say.

“Landcorp’s sneaky submission to the TWG proposing a water tax, nitrogen fertiliser tax and not opposing a capital gains tax proves how out of touch the state-owned company is with farmers on the ground,” Mr Guy says.

“With 6700 other submissions, why was Landcorp pressured to put in a submission that was more than a month late? The reality seems to be that the TWG are hell-bent on introducing environmental taxes and a capital gains tax, so they leaned on Landcorp to submit supporting more taxes and levies. . . 

New president and vice president elected to HortNZ board:

The Horticulture New Zealand board elected Barry O’Neil as its new President and Chairman at a meeting today. Mr O’Neil replaces Julian Raine, who has been President and Chairman for six years and who has made a significant contribution to horticulture for New Zealand. Mr Raine has stood down to pursue other business interests.

Bernadine Guilleux was elected Vice-President, with both positions effective from 1 January 2019. . . 

Busy orchardist advises small businesses start payday filing:

A Hawke’s Bay orchardist is advising fellow small businesses to be ahead of the game on payday filing.

This is the mandatory requirement from April next year for employers to file their payroll information to Inland Revenue every time they pay their staff.

Te Mata Figs owner Helen Walker has been paying her five staff fortnightly and sending across their details using the online entry method in myIR. . . 


Rural round-up

12/11/2018

Fonterra hopes for collaboration in review of regulating law – Jeremy Rees:

Fonterra has welcomed the review of the law which governs it and urged farmers and shareholders to work with the government to get it right.

At its annual meeting, Fonterra chairman John Monaghan told the 360 farmers in the audience that the Dairy Industry Restructuring Act (DIRA), which regulated the company was a complex piece of legislation but it was important to get any changes right.

“Let’s be clear. Fonterra’s performance, good or bad, is not driven by DIRA,” he said.

“But an updated DIRA can deliver our shared vision for the future of the New Zealand dairy industry.”

The government began in May a review of the Dairy Industry Restructuring Act 2001 which sets the parameters for Fonterra, the co-operative dairy giant. . . 

Fonterra is under attack from all sides, and now from within, as it grapples with issues that date back to 2001. These restraints allow its competitors to pick away at its good bits. China holds a tariff lever over NZ policymakers – Guy Trafford:

A busy week for Fonterra with the appointment of the two new directors and one still to come. Later today comes the result of the asset review instigated after the poor results from last season.

One of the new directors, Leonie Guiney has made her position plain in September she was quoted saying she wants the company to shift its whole strategy away from investments, like Beingmate and China Farms, which she says are “beyond our capability”.

If Fonterra thought they may get an easier path in the future through a revamp of the DIRA, the indications coming out are any thing to go by they are going to be disappointed. In fact, some are suggesting that the goal posts have been moved further away with a 70% mark as the point which is more likely to trigger a freeing up of some of the constraints the Coop is required to operate under. . .

New directorate to run M bovis programme – Annette Scott:

The new Mycoplasma bovis Response Directorate will provide a more robust model for the ongoing response to the cattle disease.

The directorate has been established after the decision by the Government and industry to try to eradicate M bovis and in consultation with Ministry for Primary Industries staff.

MPI response and readiness director Geoff Gwyn has been appointed to lead the new body.

Gwyn has headed the M bovis response since the cattle disease was found in July 2017. . . .

Swarmstorm design to benefit beekeepers:

Hobby beekeepers could have an alternative product to recollect swarms and maintain bee reproduction rates thanks to the work of Massey University industrial design student Liam Brankin.

The 22 year-old has devised a prototype backpack he calls the Swarmstorm that uses a suction hose, similar to a household vacuum cleaner, to suck and capture bees into a cardboard container before they are transferred to hives to continue the reproduction and honey-producing process.

His design is part of the Exposure graduate exhibition of final year work by design, art, creative media and music students from the College of Creative Arts, which opens at the Wellington campus on Friday.  . . .

Commission authorises extending restrictions on infant formula marketing ;

The Commerce Commission has authorised members of the Infant Nutrition Council Limited to extend the advertising and marketing restrictions in their Code of Practice to cover infant formula products for children aged up to 12 months of age.

Currently, the restrictions only apply to infant formula products for children aged up to six months of age. The INC asked the Commission to authorise the extended advertising and marketing restrictions, as the extended restrictions may lessen competition. . .

Nursery industry congratulate Young Hort 2018 runner-up:

Runner up Young Horticulturalist of the year, Devin Westley, is an extraordinary young man with a huge passion for his work as a nurseryman and innovator in the industry.

His employer, Southern Woods Nursery and the NZ Plant Producers’ Industry are delighted with his placing in the New Zealand Young Horticulturalist 2018 competition.

Devin also took home awards for best practice, practical activities and best speech on the night at the award’s dinner in Auckland last night. . . 


Rural round-up

25/09/2018

Counting sheep a new challenge for Northland science students:

Counting sheep is often touted as a remedy to help troubled sleepers nod off.

But for Whangarei Boys’ High School students, counting sheep has become part of the curriculum.

Two classes of Year 11 science students are studying a learning module called ‘Keep calm and count sheep’.

The resource examines the nutritional requirements of ewes and the factors that influence sheep growth rates. . .

Strawberry crisis: How NZ growers can prevent ‘crisis contagion’ – Daniel Laufer:

The reputation of New Zealand’s strawberry industry could be contaminated by the needles found in Australian fruit, but our growers can still minimise the damage, writes Daniel Laufer.

New Zealand strawberry growers face a challenging situation with the tampering of Australian strawberries. How can they convince consumers to continue buying strawberries, despite the highly publicised incidents of needles in strawberries grown in Australia?

The issue has made the headlines here in New Zealand with the first reported case yesterday of tampered Australian imported strawberries in an Auckland supermarket. . .

Major fresh produce traceability project underway in New Zealand:

In light of the recent shocking Australian strawberry tampering event, the New Zealand produce industry is taking every action possible to reassure customers their safety systems are robust.

United Fresh is the New Zealand pan-produce organisation that is currently leading a major New Zealand-led project reviewing traceability systems in our produce sector. . .

Final candidates for Fonterra elections announced:

Following the completion of the Self Nomination Process for the 2018 Directors’ Election Process, there are five candidates standing for three places on the Fonterra Board in 2018.

Peter McBride, Jamie Tuuta and Ashley Waugh were announced two weeks ago as the Independent Nomination Process candidates. All three candidates were nominated by the Fonterra Board after being recommended by the Independent Selection Panel. The process for their nomination was supported by the Shareholders’ Council in accordance with the Independent Nomination Process . .

Outspoken Fonterra critic launches campaign for board seatB –Nikki Mandow

Sept. 24 (BusinessDesk) – Outspoken former Fonterra director Leonie Guiney, who was temporarily gagged by the cooperative after losing her seat on the board last year, is seeking re-election in November.

Guiney, who has strongly criticised the strategy that led to Fonterra investing approximately $1.5 billion in now-failing assets like Beingmate and China Farms, is one of two self-nominated candidates. There are three official board nominees, and three places available. . .

Dairy co-operatives struggle without retained earnings – Keith Woodford:

Currently there are three dairy co-operatives in New Zealand – Fonterra, Westland and Tatua.  The first two are struggling for capital, whereas the third, the tiny Tatua, has been an ongoing success story of prosperity.

The essence of the difference lies in retained earnings and their productive use.

Comparative statistics for the three co-operatives are available for the six years from 2010/11 through to 2016/17. In that time Fonterra retained a total of 70c of capital per kg milksolids, Westland retained 84c, and Tatua retained $4.85. Those numbers spell it out in spades. . .

FarmIQ powers Farmlands’ SafeFarm:

New Zealand’s most comprehensive farm management software provider has partnered with the country’s largest farmer retail co-operative, Farmlands, to launch SafeFarm, a complete Health and Safety software system designed with New Zealand farmers in mind.

SafeFarm is built on FarmIQ’s software platform, utilising much of the mapping, recording, reporting and analytical capabilities inherent in FarmIQ.

The SafeFarm software package is available free of charge to Farmlands’ shareholders. Users of the application can seamlessly upgrade and trial FarmIQ’s newly launched range of farm management subscriptions from within SafeFarm. . .

 

The original performance fibre merino wool proves its natural function for transseasonal delivery – Louisa Smith:

As the original performance fiber, wool, in particular merino wool, has reemerged as a key contender for the sports and outdoors market. Natural, recyclable and also biodegradable, it is fast becoming a key contender for its breathability, thermal regulation and anti-odor, all inherent functions that appeal to the consumer, combined with its natural DNA.

Sustainability is a key factor through recycling and biodegradable functionality

Natural fibers, including cotton and silk are entering the performance sector, but for merino wool, the anti-odor benefits give it a heads up as this becomes a major trend in the sports and outdoors sector. Not just for the elimination of nasty body odors after high impact activity, but also a reduction in home launderings that benefit and environmentally friendly approach. . .


Rural round-up

14/09/2018

Fonterra loss could be opportunity for change – Andrew McRrae:

Dairy farmers are hoping the massive financial hit taken by Fonterra will be used as an opportunity to reset the business for the future.

The dairy cooperative delivered a net loss of $196 million for the year ended July, after being hit by compensation payouts and investment write downs.

Revenue rose 6 percent to $20.4 billion.

Orini farmer Allan Crouch said even though a loss had been signalled, it was still very disappointing, especially compared to the $734m profit the year before. . .

Fonterra ponders Beingmate future as part of strategic review – Nikki Mandow:

(BusinessDesk) – Fonterra is looking at whether it should get rid of its disastrous Beingmate investment as part of an ‘everything up for grabs’ strategic review.

Speaking as the company announced the first full-year loss in its 18-year history, chairman John Monaghan said the company was doing a “full stocktake and portfolio review looking at all our major investments, assets and joint ventures to see how they are performing and where they fit with our strategy”. Beingmate was a key investment under the spotlight. . .

Co-op must do better:

The Chairman of Fonterra’s Shareholders’ Council Duncan Coull has said he is extremely disappointed with the Co-op’s 2018 Annual Results.

“There’s no denying that our farmers are unhappy with current performance, and this year’s results,” he said.

“The underlying result and its impact on earnings, dividend and carrying value is totally unacceptable and one that our farming families will not want to see repeated. Moving forward, it is imperative that our business builds confidence through achievable targets and at levels that support a higher carrying value of our farmers’ investment. . .

A thoroughly modern-day forward-thinking farmer – Pat Deavoll:

If ever there was the epitome of a thoroughly modern-day Kiwi farmer, the new Federated Farmers South Canterbury president would be it.

Jason Grant does it all. He owns and manages two dairy operations and a 1000 hectare dry stock farm, is a director of an irrigation company, an active member of two river catchment groups, a husband to Anna and father to Ruby (11), Oscar (12) and Wills (13), and of course, in his Federated Farmers role, an advocate for the local farming fraternity.

That he has a lot on his plate is an understatement. He says his life is “pretty full.” . . .

Farmers deserve recognition for their hard milk slog – Lyn Webster:

We are living in fantasy land where many people seem to think money grows on trees.

Well, it bloody well doesn’t!

Warning: I am grumpy because I have just lost my job due to impeding farm sale – more on that later.

About 25 per cent of New Zealand’s overseas revenue is generated by dairy farming, which is done by about 36,000 people.  That’s not many people to bring in a huge chunk of the country’s income.  

When the payout drops, which can happen overnight, it can affect your dairy farming business very badly very quickly.  Milk prices are volatile, sensitive to international demand and currency changes. Farmers put their seasonal plans in place, including stock numbers and a budget – if the milk price plummets, you pretty well have to suck it up because you haven’t got much wiggle room. . .

Funds run dry for beekeeper working to eliminate deadly parasite – Maja Burry:

A West Coast beekeeper says his bees are resistant to the varroa mite but that decades worth of work may be lost unless he can urgently pull together enough money to keep his business running.

Varroa mites infest bee hives, feeding on larvae and an infected hive usually dies within three or four years.

Westport beekeeper Gary Jeffery said he wanted to eliminate the parasite by distributing mite-resistant queen bees that he has bred around New Zealand. . .

Fonterra changes vindicated– Hugh Stringleman:

The calibre of new directors and nominees for the Fonterra board vindicates the governance changes and the downsizing of the board and outweighs the initial loss of experience, departing director Nicola Shadbolt says.

Her decision not to seek a fourth three-year term is in accordance with the guideline of nine years as the optimum and 12 years as the maximum.

The three candidates for vacancies around the board table announced last Monday are one-term sitting director Ashley Waugh along with Jamie Tuuta and Peter McBride. . .

Deer market doing well – Ashleigh Martin:

The deer market is achieving well at the moment, New Zealand Deer Farmers Association chairman John Somerville says.

“Venison prices are the best they’ve ever been and the velvet has been really stable for six or more years with some really good pricing.

“We’re hoping for slow steady growth of the deer market


Rural round-up

03/07/2018

Moves to revive Ruataniwha dam scheme – Anusha Bradley:

A group of Central Hawke’s Bay businessmen are hoping to resurrect the controversial Ruataniwha Water Storage Scheme after buying the intellectual property from the Hawke’s Bay Regional Council for $100,000.

The regional council spent $14 million, and four years, trying to get the scheme off the ground before the Supreme Court ruled last year it could not flood a large parcel of conservation land.

Now, a company called Water Holdings CHB has bought the intellectual property and rights to the scheme from the regional council’s investment arm.

Water Holdings CHB director Gavin Streeter said owning the assets, which included consents and modelling data, would allow the community to explore options for reviving the scheme. . .

Chance for young farmers and farm workers to have their say:

Farmstrong has developed a new online survey to better understand the pressures facing younger farmers and farm workers, and asking them what works to improve their wellbeing.

The survey is being undertaken in association with NZ Young Farmers, and is open for all under 35 year old farmers and farm workers.

We have developed two surveys, one for women and one for men. Most of the questions in the two surveys are similar, but there are some that are specific to men or women, such as the networks they belong to or the print magazines they read.

The survey is confidential and only takes about 10 minutes to complete.  It is open till 16 July 2018. . . 

Sell-out crowd for 50th FMG Young Farmer of the Year Grand Final in Invercargill:

Finalists competing in the FMG Young Farmer of the Year Grand Final will arrive in Invercargill today.

It’s the 50th anniversary of the iconic agricultural contest, which was first held in Auckland in 1969.

A sell-out crowd of more than 1,000 people will pack ILT Stadium Southland for Saturday’s quiz and awards night. . .

AI and IoT changing the face of NZ dairying:

A fledgling New Zealand agritech company run by a rising Kiwi entrepreneur who has worked for Rocket Lab has raised $8 million, from Silicon Valley venture capital firm Data Collective, which is likely to result in massive changes to the nation’s burgeoning dairy industry.

Waikato company Halter will use the $8 million boost to help farms guide and manage their dairy cows by using IoT and artificial intelligence, sustainably increasing production, saving billions in labour costs and improving environmental compliance and animal welfare. . .

GlobalDairyTrade marks its 10th anniversary:

Ten years ago, Global Dairy Trade held it first online auction on the GDT Events platform with the aim of being the most credible and comprehensive provider of prices across core dairy ingredients.

By the end of June this year, GDT Events had facilitated the trade of more than US$22 billion cumulative value of dairy products to buyers from over 80 countries.

Eric Hansen, Director Global Dairy Trade says the GDT Events auctions re-wrote the rules of engagement for buying and selling dairy commodities. . .

Fonterra welcomes appointment of new Beingmate baby & child food General Manager:
Fonterra welcomes the appointment of Bao Xiufei (Bob) to the role of General Manager of Beingmate Baby & Child Food Co Ltd. The move was announced yesterday and follows a comprehensive search.
Mr Bao joins Beingmate from Royal FrieslandCampina China, where he had a successful career, including most recently, as Friso Chief Sales Officer (CSO) and Consumer Dairy Managing Director. Prior to this, he was the Sales Director at Wyeth Nutrition and held senior roles at PepsiCo and Wahaha Food Group. . .

Horticulture NZ asks growers to renew funding:

Horticulture New Zealand’s Board is asking growers to vote to renew the levy funding that keeps the organisation going, with voting papers going out today. 

A levy rate of 14 cents per $100 of sales of the fruits and vegetables covered in The Commodity Levies (Vegetables and Fruit) Order is the principal funding mechanism to support Horticulture New Zealand’s work for commercial fruit and vegetable growers. The levy expires in May 2019 and voting to renew it, or not, needs to be completed by 13 August 2018.

“The purpose of Horticulture New Zealand is: Enabling, promoting and advocating for growers in New Zealand to achieve the industry goal (a $10 billion industry by 2020),” says Board President Julian Raine. . .

Agriculture 4.0: Technologies at the heart of agtech:

‘Agtech’ has been described as the fourth agricultural revolution – a marriage of data, farming and technological innovation that will further transform the industry and help us to achieve so far unrealised levels of productivity (such as the long-sought 20t/ha wheat yield), efficiency and environmental sustainability.

3D printing

According to Dr Larousse, eight technologies are at the heart of agtech and all have the disruptive power to transform agriculture. Four of them are software, four hardware. One of them is already being practised by Alltech: after its recent purchase of the feed solutions company Keenan, it decided it could provide a more efficient spare parts service by turning to 3D printing, allowing farmers around the world near-instant access to parts from their local dealer. “But it needn’t stop there: we could also ‘print’ food from its constituent ingredients or provide robots with the means to self-repair.” . . 


Rural round-up

28/01/2018

Fonterra has to face up to debacle at Beingmate – Fran O’Sullivan:

Fonterra has run out of lip gloss to apply to its $774 million investment in Beingmate, which has smoked a huge amount of shareholders’ cash since CEO Theo Spierings formed a joint venture through the Chinese company’s charismatic founder three years ago.

Both Spierings and Fonterra chairman John Wilson will have some tough questions to answer when they finally front shareholders over the management of the joint venture – particularly, because of what I see as the clear failure at governance level in Beingmate.

That became alarmingly apparent this week when four directors including its vice-chairman (who is also the third largest shareholder), the chair of the company’s audit committee and Fonterra’s two director representatives, broke ranks and revealed that, in effect, they had no confidence in the integrity of the financial information which had been presented to them as the basis of projected losses of $171m-$214m for the December 2017 financial year. . . 

One billion trees of embarrassment

In October 2017 Shane Jones’ distinctive Shakespearean voice could be heard booming throughout the land as he crowed triumphantly about his 1 billion trees in the Billion Trees Planting Programme. Less than three months later, not a single tree has been planted and the government is on track to come up 90% short of their target of doubling the rate of planting over 10 years.

The issue isn’t so much that there isn’t enough land available for Forestry Minister Shane Jones to plant these trees on. Rather it’s that neither New Zealand First or Labour bothered to ask the public service during the coalition negotiation process whether it was in fact possible.

The “Billion Trees Planting Programme” has been a bit of a disaster right from the get go. . . 

Fruit and vegetable supplies not wilting in summer heat – Gerard Hutching:

Supplies of fruit and vegetables are still plentiful in spite of, or perhaps because of the heat wave covering the country.

And milk quality has not been affected, unlike across the Tasman where Australian baristas are complaining it is not at its frothy best.

Fruit and vegetable growers running out of water are having problems because of the heat but otherwise it is “business as usual”, Horticulture New Zealand senior business manager John Seymour said. . . 

New boss sees huge opporutnities – Annette Scott:

Internationally recognised plant scientist Alison Stewart has been appointed as the new chief executive of the Foundation for Arable Research. She talked to Annette Scott about what attracted to her the key role in in the arable industry. 

When Dr Alison Stewart sat on the panel that did the external programme management review of the Foundation for Arable Research (FAR) in 2016 she realised the huge opportunities for the future of the organisation.

Then, a year later, she saw the advertisement for a new chief executive. . . 

Honey sector growth unsustainable – Rachel Rose:

THERE’S lots of discussion about whether we have pushed past hard limits in the case of dairy farming, but have we gone past “peak bee”?

The Great Springvale Bee Standoff is back and elsewhere in today’s paper you’ll see more complaints about bees causing a nuisance in town.

There were 27 complaints made to Whanganui District Council last year about bees in the urban areas. WDC’s media release last month singled out urban hobbyists with a hive or two on the back lawn, as if the large numbers of commercial hives on the outskirts of the suburbs — particularly over winter — didn’t exist. . . 

New Zealand shearer has worked around the world – Jill Galloway:

Paul Rooney has shorn in Wales, Scotland and England, as well as Italy, the United States and Australia.

Now he has a farm and a family and prefers to limit his shearing to around Manawatū.

His travelling days are over, and he misses the travel and excitement, but not the hard work.

Rooney first went overseas in the New Zealand off-season of 1991 when he was 25. He worked in Britain and the change came as a bit of a shock. . . 


Rural round-up

23/01/2018

Record lamb and mutton receipts and second highest for beef:

Red meat export receipts reached a record high for the December quarter of the 2017-18 season, according to an analysis by Beef + Lamb New Zealand’s (B+LNZ) Economic Service.

The record was driven by high export volumes and average Free-on-Board (FOB) per tonne at record values for lamb and mutton, and near record values for beef, while the New Zealand dollar (NZD) has remained relatively strong.

Andrew Burtt, B+LNZ chief economist, said lamb and mutton farm-gate prices were up 30% and 59% respectively for the first quarter of the season (October-December 2017) compared to the previous season. Cattle prices were relatively steady – up 5%. . . 

MPI says disease is contained – Annette Scott:

Despite the growing number of properties testing positive for the cattle disease Mycoplasma bovis the Ministry for Primary Industries (MPI) remains adamant it has the disease contained.

MPI on Wednesday confirmed three new infected properties, two in Southland and one at Ashburton, bringing the total number of properties testing positive to 17, including one in Hawke’s Bay.

The number of restricted place notice properties is 34 and the number of properties for casing is 206. . . 

Fonterra ‘extremely disappointed’ as Beingmate’s forecast loss widens, again – Jamie Gray:

Fonterra says it is “extremely disappointed” that China’s Beingmate Baby & Child Food, in which it has an 18.8 per cent stake, has issued another earnings downgrade – this time to a loss of $171-$214 million for the December 2017 year.

The previous forecast was for a loss of RMB350m to RMB500m ($75m to $107m).

Fonterra said it was assessing the implications the loss would have on its first half result.

“As an investor in Beingmate, we are extremely disappointed by this announcement and the on-going performance of the company,” Fonterra said in a statement. . .

Mackay vs McKay in celebrity shears:

Jamie Mackay will be back at Waimumu to defend his speed shear title, this time going head to head with Rural Exchange presenter and former sports commentator Hamish McKay.

The inaugural Southern Field Days Speed Shears, held at the 2016 event, had The Country presenter Jamie Mackay go head to head with National leader Bill English.

Mackay walked away with bragging rights and he is coming south to compete again in this year’s “Celebrity Shear Off”. . .

Farm groups back TPP deal as Australia, Japan issue new March deadline – Kelsey Johnson:

Canadian farm groups are doubling down on their support for the revamped Trans-Pacific Partnership (TPP), after Australian Prime Minister Malcolm Turnbull said he wants the multilateral trade deal finalized by March — with or without Canada and Mexico.

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) has been in negotiation since the United States pulled out of the Trans-Pacific Partnership last January. Eleven members nations are involved in the discussions, including Australia, New Zealand, Japan, Mexico, Vietnam and Canada.

During a state visit to Japan this week, Turnbull said Australia and Japan want the new agreement finalized and an agreement-in-principle signed by March, according to reports from The Australian Financial Review. . . 


Rural round-up

01/09/2014

Agri-careers promoted – Sally Rae:

Agriculture is ”far more than milking cows and drafting sheep”.

That was the message from Jacqueline Rowarth, professor of agribusiness at Waikato University, to a group of Dunedin secondary school pupils last week.

”It’s everything that New Zealand does because New Zealand business is agribusiness … Our whole lifestyle is from what we export,” she said. . . .

Effluent making power, hot water :

Dairy effluent could be used as a source of heat and electricity on Southland dairy farms.

If trials are successful, the dairy farming waste product could become a valued resource in the future.

Monitoring at two farms in Dacre and Pukerau has shown that anaerobic digestion of dairy farm effluent in unheated effluent ponds, is consistently producing large volumes of methane, even during the cold conditions of the Southland winter. . .

Retiring Fonterra director looks for new challenges  – Gerald Piddock:

Jim van der Poel has lived and breathed Fonterra for more than a decade.

But after serving on the board of the country’s biggest company for 12 years, the Waikato farmer will step down as a director at Fonterra’s annual meeting in November.

A board member since 2002, van der Poel was immensely satisfied with the role he played in Fonterra’s development over the past decade. . .

No excuse now – Richard Rennie:

The right kit, the right market conditions, and high-quality supply mean there will be no excuses for Fonterra’s executive not to deliver higher dividends and milk prices to its shareholders.

Large-scale south Waikato farmer Ian Elliott believes that after last week’s $1.2 billion investment announcement into plant and Chinese market ventures, the company should be poised to achieve its full potential for New Zealand and farmer shareholders.

“Having investment into plants that can produce higher value products removes that last barrier to achieving the optimum returns for farmers,” Elliott said. . .

Time to leverage export dominance

Fonterra has given its value-creation wheel a strong crank by announcing more processing plant construction at home and a new joint venture with Beingmate, the No 1 infant formula company in China.

Its borrowing intentions of $1.2 billion will increase the debt:equity ratio to 45%.

At home it needs to expand peak processing capacity and avoid the constraints which cost farmers about $900 million last season in foregone revenue. . .

Council approves dam funds –

Hawke’s Bay Regional Council has approved an advance of $3.1 million to the Hawke’s Bay Regional Investment Company (HBRIC) to cover the period until financial close on the Ruataniwha Water Storage Scheme.

The decision was made in a public-excluded session of Wednesday’s council meeting and supported by all councillors present.

Given the lodging of appeals to the High Court on the proposal, financial close for the scheme will no longer occur by September 30, with the best estimate now March 31 next year.

All investment funds contributed by the council in this development phase are part of its overall financial contribution to the Ruataniwha Water Storage Scheme.  . . .

 

 

 


Rural round-up

31/08/2014

Co-operation at a strategic level – Glenys Christian:

There could be downstream as well as upstream benefits to Fonterra’s $615 million deal with Chinese infant food manufacturer Beingmate, starting at the onfarm level in that country.

Fonterra chairman John Wilson said after the announcement of the move was made on Wednesday that discussions had been held about how the co-operative could help out in other areas.

“Beingmate has its own farms,” he said.

That meant there were opportunities to look at the two companies joining together more in farm management with Fonterra already having one hub of dairy farms up and running in China, a second hub started, and commitment to a third. 

“We’ve had discussions about more alignment,” he said.

“There may be benefits upstream and downstream in the future.” . . .

Honour for noted sheep breeder – Jon Morgan:

In 1956, 23-year-old romney stud breeder Roger Marshall sold his first rams at the Manawatu and West Coast Ram Fair in Feilding. The Rangitikei Mail reported that when the first ram was knocked down at 1400 guineas after spirited bidding the large bench of buyers broke into spontaneous applause.

“I remember being quite worried because it had rained for several days before the sale, and all my rams had wet wool, but to get 1400 guineas was terrific – that was the price of a new Holden car in those days,” the quiet- spoken farmer says. “It was a great incentive for me.”

It was a sparkling opening to a career in sheep breeding that eventually took him to the other side of the world in search of new blood to rejuvenate the sheep industry. . .

A2 poised for US start – Alan Williams:

The strong NZ dollar has cut into reported profits but A2 Milk Company remains confident it can fund development of three new markets from its existing cash and cashflows.

A2 had $16 million cash in the bank at June 30 and is booking strong Australian sales and operating cashflows.

It will use them to build on its slowly developing markets in China and the United Kingdom and to begin sales in the United States next year. . .

Manuka honey sector gets boost with trial expansion:

The lucrative Manuka honey healthcare market is set to expand after New Zealand’s largest farmer, Landcorp Farming, announced it’ll be planting an additional 93 hectares of mānuka honey trees.

The new plantings are part of the High Performance Mānuka Plantations programme — a seven year Primary Growth Partnership (PGP) between the mānuka honey industry and the Ministry for Primary Industries (MPI) to increase the yield and reliability of supply of medical grade mānuka honey.

The PGP trials, involving Landcorp, Hawke’s Bay Regional Council, Comvita, Aborex Industries, Don and Conchita Tweeddale and Nukuhau Carbon Ltd, were launched in 2011 to increase the value of the mānuka honey industry from an estimated $75 million towards $1.2 billion per annum by 2028.

Maori Trustee Te Tumu Paeroa is also a shareholder in the programme. . .

Californian drought is so severe it’s ‘causing the ground to move’:

Vanishing water is causing the ground to rise in the western United States, according to a new study.

 Scientists estimate that 63 trillion gallons of water has been lost in the west over the past 18 months. 

The surface of the Earth is much more springy than you might think. When you put something very heavy on it, there’s a good chance the ground will sink at least a little bit. And in the same way, when you remove something very heavy, the ground will lift.

As it turns out, 63 trillion gallons of water is pretty heavy. . . .

Rural Women Drive Post-conflict Recovery in Bosnia and Herzegovina – Food tank:

The International Fund for Agricultural Development‘s (IFAD) Livestock and Rural Finance Development Project has helped transition rural businesses in Bosnia and Herzegovina from the initial stages of post-conflict recovery to long-term sustainable development. The program has financed rural infrastructure redevelopment and provided credit and training to small business owners. This program has particularly focused on reengaging women in the workforce.

On a macro-level, the program has helped to improve producer access to markets. At the local level, the program has encouraged the formation of producers’ associations and helped provide individuals with machinery and technical support services. For example, members of the Nevesinje’s Producers’ Association have received credit and trainings on food safety, handling, and storage of their product from the program.

The program has also helped open up a discriminatory workforce to women. In the decade following the Bosnian War, there was a marked decrease in women in the workforce and a resurgence of traditional attitudes about gender roles. . .

 

Just punctuate. </p><br /><br /> <p>#grammar


Rural round-up

28/08/2014

Fonterra to offer at least 20% premium for Beingmate shares in deal to drive Anmum sales – Jonathan Underhill:

 (BusinessDesk) – Fonterra Cooperative Group will offer a premium of at least 20 percent for a one-fifth stake in Beingmate Baby & Child Food as part of a $615 million investment in a partnership to drive baby food sales into China.

Fonterra will offer 18 yuan a share for Beingmate stock in a partial tender offer that will be supported by chairman Wang Zhentai, who will sell down his stake to about 33 percent in the transaction.

Based on Reuters data, Beingmate has 1.02 billion shares on issue, suggesting the offer values the Chinese company at 18,360 billion yuan and Fonterra would pay 3.67 billion yuan, or NZ$714 million to build a 20 percent stake. The shares last traded at 14.36 yuan before being halted from trading, according to Reuters data. . . .

New Zealand And International Investment Welcomed by Farmers:

Fonterra Shareholders’ Council Chairman, Ian Brown said today’s announced investments in New Zealand’s milk pools and a global partnership with China’s Beingmate were bold moves that would be welcomed by the Co-operative’s Farmers.

Mr Brown: “There is a direct link between the $555 million investment in the Lichfield and Edendale sites and the $615 million investment in the partnership with Beingmate in that both align with the Fonterra strategy of increasing the volume and value of our milk.

“The investment in New Zealand operations is a real positive and will optimise the Milk Price we receive by enabling our Co-op greater flexibility in deciding which products our milk goes into and when. . . .

 Fonterra news ‘as far from milk & disaster as the moon’:

Farmers will be breathing a huge sigh of relief with Fonterra’s benchmark forecast payout for 2014/15 being held at $6 per kilogram of Milk Solids (kg/MS), while other aspects of the announcement are a great boost of confidence in New Zealand agribusiness.

“This is as far from milk and disaster as the moon is,” says Andrew Hoggard, Federated Farmers Dairy chairperson.

“While this season remains a super trim one last season was definitely a silver top one.

“The milk price hold is good news given there’s been widespread speculation about it sliding below the $6 mark, however, we’re not out of the woods yet. We still advise farmers to err on the side of caution by budgeting in the mid-$5 payout range. . .

Major boost for Otago conservation projects:

Associate Conservation Minister Nicky Wagner today announced $475,000 in funding for four Otago conservation projects.

Community Conservation Partnership Fund grants will be made to the Orokonui Ecosanctuary, Landscape Connections Trust, Otago Peninsula Biodiversity Group, and Herbert Heritage Group.

“The projects these groups are advancing align perfectly with the Department of Conservation’s goals of connecting more urban dwellers to conservation and working in partnership with others.

“The Orokonui Ecosanctuary is recognised as the flagship biodiversity project in the South Island and is achieving its aim of restoring the coastal ecosystem to pre-human state. . .

The long arm of health and safety gets longer – Andrew McGiven:

We’ve all heard about the Marlborough farmworker copping $15,000 worth of fines related to a quad bike.  Helmet use is in the Department of Labour’s (now Worksafe NZ) ‘Guidelines for the safe use of quad bikes.’  . 

While there’s been plenty of discussion about the fine what has slipped under the radar are other recommendations in the guide.  One is recognising dangerous areas on-farm and establishing ‘no-go’ zones in your health and safety plans. 

Another case, highlighted for us by Neil Beadle, a Partner at Federated Farmers’ legal advisors DLA Phillips Fox, rams home the bite of these recommended ‘no-go’ zones.  It involved a Mangakino sharemilker with an otherwise good record who tragically lost a farm worker when their quad bike flipped.  . . .

Beet crop ‘revolution for beef farmers’:

The growth in the use of fodder beet as a forage crop in the beef industry has been so rapid, that seed supplies for the coming growing season are expected to run out.

That is the prediction from Dr Jim Gibbs, a senior lecturer in livestock health and production at Lincoln University, who has done years of research on feeding cattle on what has become a revolutionary crop in this country.

Fodder beet is a bulb crop related to beetroot but can grow to huge sizes.

Dr Gibbs’ work was initially for the dairy industry, but the demand for fodder beet really exploded when he introduced it to the beef industry, and he says it has become the fastest growing forage crop by a long shot. . . .


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