Rural round-up

March 21, 2019

Shareholders say sale was inevitable – Brendon McMahon:

The possible sale of Westland Milk Products to China is a ”sad day” for the West Coast but necessary to save the business, a sample of farmer-shareholders said yesterday.

The Hokitika dairy co-operative, praised for years for retaining its independence in the face of Fonterra amalgamations, is poised to be sold to the Chinese dairy giant Yili.

Harihari dairy farmer and former board member Jon Sullivan greeted the news yesterday morning with ”she’s gone”.

Farmers had been left with ”no choice” but to sell, he said. . . 

Fonterra Announces 2019 Interim Results And Updates on Its Portfolio And Strategic Reviews:

Fonterra Co-operative Group Limited today announced its 2019 Interim Results which show the Co-op has returned to profitability with a Net Profit After Tax (NPAT) of $80 million, but normalised Earnings Before Interest and Tax (EBIT) are down 29% on the same period last year to $323 million.

• Key numbers in Interim Results
o Sales volumes 10.7 billion liquid milk equivalents (LME), up 2%
o Revenue $9.7 billion, down 1%
o Normalised EBIT: $323 million, down 29%
o NPAT: $80 million, up 123%
o Total normalised gross margin: $1.5 billion
Ingredients Gross Margin: $791 million, down 9%
Consumer and Foodservice Gross Margin: $766 million, down 7%
o Full year forecast earnings: 15-25 cents per share
o Forecast Farmgate Milk Price: $6.30-$6.60 per kgMS
• Sales process started for Fonterra’s 50% share of DFE Pharma
• Completed the sale of Corporacion Inlaca to Mirona
• Update on full strategy review . . 

Fonterra to hit debt reduction target from asset sales – Paul McBeth:

 (BusinessDesk) – Fonterra Cooperative Group expects to slice $800 million from its debt ledger through the sale of assets already signalled for the block.

The world’s biggest dairy exporter is strengthening its balance sheet as part of its wider strategic review. That’s included the divestment of a range of assets no longer deemed central to the cooperative’s future, the latest of which was a 50 percent stake in DFE Pharma – a joint venture with FrieslandCampina which supplies bulking agents, or excipients, in medicines including tablets and inhalers.

Fonterra has already announced plans to sell ice-cream maker Tip Top, with investment bank First NZ Capital receiving final bids earlier this month. It’s also considering its options for its 18.8 percent stake in Beingmate Baby & Child Food. . . 

Comforting news for dairy farmers as companies report results and the world price rises again – Point of Order:

Encouraging signs emerged this week that key elements in the structure of NZ’s largest export industry are whipping themselves back into the shape they should be.

The giant  co-op  Fonterra  has  gone back  into the  black  with a net profit of $80 million in the  first half,  after previously recording  a  net  loss of  $186m.

Meanwhile Westland Milk Products, NZ’s second biggest dairy co-op, is in line to be  sold  to China’s biggest  dairy company,  Yili,  in  a $588m  transaction that would inject nearly half a million  dollars into the operations of  each  of its  suppliers. . . 

Fonterra’s culture change– Craig Hickman:

Is it just me or is Fonterra undergoing a remarkably rapid culture shift in a very short space of time?

Last year I attended the Ashburton leg of the Fonterra Financial Results Roadshow: quite apart from the delicious lunch and sneak preview of the new Whittaker’s ice cream, it was a chance to hear then interim-CEO Miles Hurrell  and new board chair John Monaghan deal with the unpleasant reality of Fonterra’s first ever financial loss.

Miles especially came across as humble, honest and realistic, and those are attributes in direct contrast to the brash and overly optimistic Fonterra leadership we are used to seeing.  . . 

Interim Results support the need for fundamental change :

The Fonterra Shareholders’ Council supports today’s acknowledgement that fundamental change is needed to improve the performance of the Co-operative.

“Fonterra’s farmer shareholders will agree that the results announced today are not where they should be,” says Council Chairman Duncan Coull. “The Shareholders’ Council backs the Board and Management’s initiative to thoroughly review strategy. A well defined and executed strategy focused on our farmers’ milk is critical to maintaining sustainable returns and an enduring co-operative for generations to come.” . . 

Significant investment in major growth projects for Synlait:

– NPAT half year profit of $37.3 million
– Re-confirmed guidance for canned infant formula volumes of 41,000 – 45,000 MT
– Manufacturing efficiencies have supported improved production and sales volumes
– Key growth projects including Synlait Pokeno and our Advanced Liquid Dairy Packaging Facility remain on track
– New growth opportunities in liquid milk, Talbot Forest Cheese and lactoferrin expansion
– New purpose ‘Doing Milk Differently for a Healthier World’ established. . . 

Hyslop elected to Beef + Lamb directorship – Sally Rae:

Irrigation New Zealand chairwoman Nicky Hyslop has ousted sitting Beef + Lamb New Zealand director Bill Wright.

She beat Mr Wright, a Cave farmer, by a margin of 1808 votes in the recent Central South Island director election.

Mrs Hyslop and her husband Jonty farm Levels Estate, an intensive sheep, beef and arable property on the outskirts of Timaru.

Mr Wright was elected in 2016, having previously been chairman of the B+LNZ Central South Island Farmer Council for six years. . . 

Urban-fringe kiwifruit orchard with growth potential placed on the market for sale:

One of closest commercial kiwifruit orchards to Auckland’s urban boundary – with potential to treble its production capacity – been placed on the market for sale.

Known as MacLachlan Orchard, the 12.2-hectare property at 90 Mullins Road in Ardmore is planted on flat land, and is forecast to produce some 42,000 trays of fruit in the current season.

The orchard’s 3.3 canopy hectares of productive land comprises some 2.29-canopy hectares of the Hayward green kiwifruit variety and 1.07 canopy hectares of the G3 gold kiwifruit strain picked off vines which were grafted some six years ago. . . 


Rural round-up

March 12, 2018

Thousands of trees hide the scars of Cyclone Bola on Mangaroa Station at Tokomaru Bay – Kate Taylor:

‘It was like a bloody atomic bomb had gone off.’ An East Coast farmer looks back at Cyclone Bola. Kate Taylor continues her series marking the storm’s 30th anniversary.

Sam Reeves loves farming Mangaroa Station today but can only imagine its devastation at the hands of Cyclone Bola.

At age 27, he wasn’t born when the historic storm hit the East Coast of the North Island in 1988.

But he is the same age previous owner Graeme Williams was when Cyclone Bola dumped more than 900mm of rain on the Tokomaru Bay farm in just two days.

“When I went to bed on the night of the 7th it was pouring down with rain,” Williams says. . .

More weight for ag emissions tax – Neal Wallace:

Another unequivocal message has been delivered that agriculture needs to shoulder a greater share of the efforts and costs of reducing greenhouse gas emissions.

In January Climate Change Minister James Shaw signalled agriculture could be included in the Emissions Trading Scheme and this week the Parliamentary Commissioner for the Environment Simon Upton said climate change policy cannot ignore agricultural greenhouse gas emissions.

New Zealand has committed to cut greenhouse gas emissions to 30% below 2005 levels by 2030 but Upton said climate change policies lack bite for fear they would compromise competitiveness. . . 

Rabobank New Zealand Agribusiness Monthly March 2018:

The Agribusiness Monthly provides timely information and analysis on agricultural conditions, commodity price updates and commentary on the latest sectoral trends and developments.

Key Highlights:

Dairy
Can the price rally survive the EU Spring peak?

Beef
Is there potential for near term price falls? . . .

Industrialised meat backlash to favour NZ sheep and beef farmers – Bill Wright:

The planets seem to be aligning for sheep and beef farmers this season.

We have had that rare combination of excellent growing conditions and strong prices for both beef and lamb – prime and store.

Adding to what has been a positive start to the year was the release of a Beef + Lamb New Zealand- commissioned report on alternative proteins.

The research showed that despite the emergence of alternative proteins, the future for this country’s grass-fed red meat is healthy. Internationally, consumers are seeking red meat produced without hormones or antibiotics and to the highest standards of animal welfare – and NZ farm systems tick all of these boxes. . . 

Kansas City’s agriculture roots run deep: Cowtown turned animal health & technology centre:

At the bend in the Missouri River on grass covered flats if you listen close you might hear echoes of the past; hoofbeats, whistling, spurs jangling, the slap of leather and the high pitched zzzzzz of a lariat. Cowboys, dust covered and bone tired, riding weary cowponies barely heard over the bawling of thousands of Texas steers, “Hold’em here boys, the drives bout over.”

Kansas City sprouted from its agricultural heritage as a Cowtown. The transition to a center for animal health, education, and technology seems only natural for a town that for hundreds of years has had millions of animals pass through this gateway to the west. . .

 


Rural round-up

January 17, 2018

Sunflower fundraiser set to raise funds for struggling farmers – Deena Coster:

Selling a flower which is synonymous with sunshine is helping give hope to struggling farmers.

In mid-November, Taranaki farmer Will Fleming planted about 500 sunflower seeds around the outside of one of his paddocks, and by next week the distinctive flowers will be on sale.

The money raised from selling off the sunflowers will go directly to the Taranaki Rural Support Trust (TRST). . . 

Pacific leader honoured for work in dairy industry and Manawatū community – Paul Mitchell:

Palatasa Havea​ is still trying to get his head around what it means to be a member of the New Zealand Order of Merit.

The Palmerston North man received the honour for a life-time of work in dairy industry research and his selfless dedication to the Pacific community in the New Year Honours List.

Havea was surprised and humbled by the appointment. But he wasn’t that familiar with the Royal Honours system, what responsibilities came with it, or that he’d done enough to deserve the recognition.

As a senior research scientist at Fonterra his work has resulted in a new manufacturing process for whey protein products and several patents for the company. . . 

Farmers are off to a good 2018 start in spite of unusual weather this summer – Bill Wright:

The year has got off to a good start and the rain on the roof as I sit and write this is music to my ears – as it will be for all but arable farmers trying to harvest crops and parents trying to keep children entertained.

It has been an unusual season, with what seems to be rapid swings between wet and dry, but the fodder beet, kale and maize crops on our farm are all looking great. The maize is a relatively new inclusion in our system and is proving valuable as cattle feed over the late summer.

All our finishing cattle were gone before Christmas, and we are getting lambs away at good weights. . .

South Canterbury farmer’s cricket pitch reports hit it out of the park – Al Williams:

Glenavy has produced an unlikely social media star who is bowling them over with his infectious sense of humour.

From the tiny South Canterbury town on the banks of the Waitaki River, Ross ‘Rous’ McCulloch Glenavy Cricket Club captain, Glenavy Volunteer Fire Brigade member, Rural Bachelor of the Year finalist, sheep farmer and online larrikin is attracting clicks with his classic Kiwi humour.

McCulloch, with the help of his cricket team-mate, opening batsman, camera operator, dairy farmer and fellow fire brigade member Jackson Henshaw, files weekly “pitch reports” to the club’s Facebook page – all tongue-in-cheek – but their efforts on and offline are paying dividends for their community.   . . 

2018 Dairy Industry Award activity heats up as entrants prepare for judging:

While many people have had a rest from the stresses of work over the Christmas and New Year break, the reality can be different for farmers.

Summer is a busy time in the farming calendar, and General Manager of the New Zealand Dairy Industry Awards Chris Keeping says it is just as important for farmers to take a break as any other person.

“Farming is a 24/7 commitment, and it is vital that farmers find time to rest and relax with family and friends,” she said. . . 

Station rebuild from the ground up – Jamie Brown:

Marango Station, bordering gorge country adjacent to Guy Fawkes River east of Ebor, has undergone a facelift of massive proportions.

When three investors bought the 3800 hectare freehold and lease hold holding two years ago they put a young cattleman Mick Kelsall in position of manager. This 33 year old’s boundless energy has helped drive substantial change.

He credits his family and grandfather Jim, ‘Kahona’ Hernani and other properties, as his first mentor and these days leans on Dorrigo agent Tim Bayliss for constant feedback. . . 

Engender moves to commercialisation of genetic dairy technology, targets US market – Tina Morrison:

 (BusinessDesk) – Engender Technologies, the agricultural technology company spun out of Auckland University, is moving to scale up its sex-selection product for the dairy industry to full commercialisation in the next 18 months and is targeting the US$2 billion dairy artificial insemination industry.

Co-founded by the University of Auckland and seed investment company Pacific Channel in 2011, Engender has secured option-to-license agreements for its technology with three of the world’s largest artificial insemination companies, has successfully concluded laboratory trials and is preparing for scaling commercialization, the Auckland-based company said in a statement. In August, the company’s first key patent was allowed in the US and its patent attorneys have confidence that it will be granted in its other key markets, it said. . . 


Rural round-up

April 18, 2017

Mentoring part of the prize – Sally Rae:

Papakaio dairy farmer Morgan Easton says he is ”humbled” to win the 2017 Zanda McDonald Award.

The Australasian agribusiness award was launched by the Platinum Primary Producers (PPP) Group in
2014.

It was in memory of Australian beef industry leader and PPP foundation member Zanda McDonald, who died aged 41 after an accident at his Queensland property in 2013.

Mr Easton, along with Invercargill-based dairy consultant Jolene Germann and Waiau farmer Henry Pinckney, was initially shortlisted for the award, along with Australians Anna Speer, Will Creek and Airlie Trescowthick. . . 

It’s not just farmers – Neal Wallace:

The country’s senior scientist has called for a more mature conversation on solving water quality issues and an end to the polarised positions that have characterised the debate so far.

Professor Sir Peter Gluckman, the Prime Minister’s chief science adviser, said to have the pristine environment we all desired would not be achieved without having a conversation “where people are not threatened but will come together and discuss solutions”.

“Where we have gone is groups with extreme positions and people are not listening to each other.”

Farm’s efficiency gain, emissions fall impresses – Sally Brooker:

A South Canterbury farm has proved environmental gains can be made while production improves, scientists say.

Beef and Lamb New Zealand director Bill Wright and his wife, Shirley, have been farming a sheep and cattle property at Cannington since 1991. Their records have allowed scientists to study the profile of greenhouse gases while the farm evolved.

The the last two years’ data also gave insights into nitrogen-leaching.

“Farmers are conscious of their collective responsibilities to restore water quality and minimise their environmental footprint,” Mr Wright said.

“But this is material we are now only learning how to manage in a way that not only protects the environment but provides opportunities to be more productive with less impact.” . . 

Blue Sky left searching for positives after Binxi offer lapses – Allan Barber:

Invercargill based meat processor Blue Sky Meats is trying to put a positive spin on its prospects after being advised by Chinese cattle and meat company subsidiary NZ Binxi Oamaru that its takeover offer would not proceed. The main reason for the decision was failure to receive OIO approval by the 20th March deadline, but Binxi also cited a material adverse change in this season’s performance. As a result Blue Sky has advised shareholders they will continue to own their shares, 96% having already accepted the offer.

The offer for 100% ownership at $2.20 per share placed a value of $25.4 million on Blue Sky compared with a current valuation of just under $15 million based on the last trading price of $1.30. Chairman Scott O’Donnell made the point adverse seasonal conditions are part and parcel of agricultural businesses, while NZ Binxi has asked the OIO to continue to process its application in spite of its withdrawal. It also signalled its possible willingness to reconsider if the OIO were to come through with a positive response. . . 

UK will offer good trade deal :

New Zealand’s farmers and exporters will get a favourable post-Brexit trade pact with the United Kingdom but find a new European Union trade agreement much harder, Lord Sam Vestey believes.

The British peer and former owner of NZ meat processing plants under the name of Weddell until the 1990s was speaking at the opening of the Royal Easter Show in Auckland.

He was chairman of the Royal Agricultural Society of the Commonwealth and a regular visitor to major shows in NZ. . . 

Southland dairy consultant in the running for Fonterra Dairy Woman of the Year:

A Southland woman who only milked her first cow seven years ago is one of three finalists in the 2017 Fonterra Dairy Woman of the Year awards.

Jolene Germann grew up on a Waikato sheep and beef farm and had no dairy experience until meeting her husband, Hadleigh, seven years ago. Now, she’s a busy dairy consultant with a full book and is an equity partner and sharemilker on a 200ha, 570 cow dairy farm in Aparima, Southland.

Germann’s husband nominated her for the Dairy Woman of the Year award and says her commitment to environmental sustainability and empathetic leadership style are her stand-out qualities. . . 

Dear Lady at the Bank – Ruby Uhart:

Last fall I went into the bank to deposit checks after we’d sold our calves.  The lady at the front desk wasn’t familiar with the company who had written the check.  I explained to her who they were and that we had sold two loads of calves.

She replied “wow.  I’m in the wrong business.”

At the time, it caught me off guard that she would say something like that and all I could do was chuckle a little and say “no.  You’re not.”

 I’ve been thinking about her all winter and different moments in particular made me wish I had said something to her other than what I replied in my dimwitted moment.  As with all of my best comebacks, they hit my brain later and are told with the story as “what I should have said was…”

So here goes.  Here’s my shoulda, coulda, woulda said….


Rural round-up

March 30, 2017

Taihape farmer opens up about depression – Gerard Hutching:

Taihape farmer Dan Mickleson has spilled his heart out on Facebook after a second bout of depression, and has been overwhelmed by the response. 

“The reaction’s gone way beyond anything I imagined when I asked them to post it. I thought it might get 100 likes and 20-odd comments but when they sent me the tracking stats this morning it’s reached over 130,000 people,” he said.

Entitled “Real Men Don’t Cry”, the 1000-word admission of Mickleson’s struggles was posted on the NZ Farming Facebook page.

I’m a food producer not a farmer: Richard Kidd  – Gerald Piddock:

Richard Kidd is not just a sheep and beef farmer, he is a food producer.

It is a small but subtle twist on words that he believed has helped him better connect with urban consumers.

Just calling himself a farmer was too broad, he said.

“We have a better story to say than we are just farmers. We are producing food that the public has to eat and I think they deserve to know that it’s well farmed, as free as chemicals as possible and a good story behind it.” . . 

Engineering student’s start-up has billion-dollar prospects – Madison Reidy:

Growing up on a 300-cow dairy farm in Matamata exposed Craig Piggott to the problems farmers face.

With a first class honours engineering degree and a year’s experience building rockets for Rocket Lab under his belt, he is now solving them with his own agri-tech invention. 

Piggott, 22, came up with the idea for a GPS tracking, solar powered cow collar while studying at Auckland University. The idea could not wait until he graduated, he said. . . 

Strong environmental gains on farm show opportunities:

Substantial reductions in the intensity of greenhouse gas emissions at a South Canterbury farm show environmental gains can be made hand in hand with a farm’s growth, scientists say.

Record keeping back to 1991, when Bill and Shirley Wright took on the sheep and cattle farm at Cave, has allowed scientists to study the profile of greenhouse gas emissions over time in an evolving farm system.

Analysis of the Wrights’ farm system in the last couple of years has also provided important insights into nitrate leaching (the loss of nitrogen), and what impacts on the amount of leaching and how best it can be managed. . . 

Synlait posts 3.8% gain in 1H profit, expects ‘modest’ full-year earnings growth – Tina Morrison:

(BusinessDesk) – Synlait Milk, the NZX-listed dairy company, posted a 3.8 percent lift in first-half profit as higher sales offset increased investment in people and business development.

Profit increased to $10.6 million, or 6.34 cents per share, in the six months ended Jan. 31, from $10.2 million, or 6.99 cents, a year earlier, the Rakaia-based company said in a statement. Sales jumped 35 percent to $288.7 million. The year-earlier earnings included a $2.9 million unrealised foreign exchange loss. . . 

Fonterra Launches Popular New Maternal Nutrition Programme in Hong Kong:

Fonterra has launched a unique nutrition programme for pregnant women in Hong Kong, developing a website endorsed by professional dieticians to give women access to healthy, nutritious at-home dining recipes and tips for eating well when dining out during pregnancy.

The programme, called ‘Anmum You & B’, also offers access to fine dining seminars where pregnant women can receive personalised food and nutrition advice from certified dieticians.

The programme’s introductory video was viewed more than 1.5 million times in one week – accounting for more than half of the 3.5 million females living in Hong Kong. . .

Te Aroha owners take role in governing their land:

Over 2000 owners of Te Aroha Aggregation farm in Waihi are celebrating a major milestone in its development, with an open day on Saturday. The day signifies the start of responsibility for the farm being passed back to the owners.

For the last three years, owners and trustees of the Māori-owned dairy farm have been supported by Te Tumu Paeroa to develop the skills and experience in governance so they can self-manage the successful enterprise.

Since 1989, Te Tumu Paeroa have been responsible trustee to Te Aroha Aggregation. Saturday’s ceremony signifies an important step for owners in the transition of management responsibility to them. . . 

Breakthrough genetics looking at cutting nitrogen leaching by 20% in NZ – CRV Ambreed:

CRV Ambreed has made a genetic discovery that it anticipates will result in a more sustainable dairy industry and potentially reduce nitrogen leaching on New Zealand farms by 20% within 20 years.

In what’s thought to be an international first, the dairy herd improvement company has announced it will market bulls that are desirable for traditional traits as well as being genetically superior for a new trait that is related to urea nitrogen in milk.

CRV Ambreed is now selling semen from bulls whose daughters will have reduced concentration of Milk Urea Nitrogen (MUN) under a LowN Sires™ brand. MUN is a measure of the amount of nitrogen contained as milk urea, and CRV Ambreed R&D Manager Phil Beatson says there’s overwhelming international evidence of a direct connection between MUN and the amount of nitrogen excreted in urine when fed different diets.  . . 

 


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