Rural round-up

December 6, 2016

Farm and research hub all go – Sally Rae:

Work is under way to convert the site of the new Southern Dairy Hub at Makarewa, near Invercargill, into a working dairy farm and centre for science and research.

Last week, Economic Development Minister Steven Joyce climbed aboard an excavator to shift  earth at the site of the new dairy shed.

DairyNZ and AgResearch  are the principal shareholders in the hub,  investing $5million each, while local farmers and businesses  have contributed a further $1.25million through the Southern Dairy Development Trust. . . 

McKay still entranced by cavalcade – Sally Rae:

When Jeanette McKay saddled up for the first Otago Goldfields Cavalcade in 1991, it was to prove to be an “epic journey”.

A blizzard hit the trail, resulting in nine people being treated for hypothermia, but it failed to dampen her enthusiasm for the event.

Mrs McKay (71), from Springvale, near Alexandra, is among a handful of equine enthusiasts who have taken part in every cavalcade. And she will be hitting the trail again for next year’s 25th anniversary event which finishes in Omakau on March 4. The event still maintained its “magic” for the cavalcade veteran who always hoped it would “enthuse people to do more trekking, to see more of the country”. . . .

Healthy Rivers Plan Needs a Rethink:

Federated Farmers is calling for the Healthy Rivers Wai Ora project in the Waikato to be put on hold.

This follows the Waikato Regional Council’s intention to withdraw 120,000 hectares from the original proposed Plan Change 1.

The decision was made after Hauraki iwi raised concerns around the consultation process.

As a result, an area of land of interest to iwi will be ‘partially withdrawn’ as a step towards future consultation with Hauraki iwi. . . 

Concrete for 50 years peace of mind – Mark Daniel:

As the milk price nuzzles $6/kgMS, dairy farmers with financial clout can again turn to dealing with effluent and some equipment makers can cease holding their breath.

One dairy farmer who has the effluent problem under control is John van Heuven, who with his wife Maria milks 500 cows on 165ha at Johmar Farms on the outskirts of Matamata.

Having decided to increase cow numbers and install a 54-bail rotary for 2015, van Heuven decided to upgrade effluent storage, which had capacity for 1.5 milkings and needed closer attention. . . 

NZ milk processors including Miraka lift forecast payouts, boosting economic outlook – Tina Morrison:

(BusinessDesk) – Advances in whole milk powder prices at recent GlobalDairyTrade auctions is bolstering the outlook for New Zealand’s largest export commodity and prompting milk processors to hike their forecast payout levels to farmers this season, signalling a boost ahead for the local economy.

Taupo-based milk processor Miraka hiked its base forecast late last week to a range of $5.80-to-$6 per kilogram of milk solids, joining Open Country Dairy which raised its forecast to $5.60-to-$5.90/kgMS, Westland Milk Products with a range of $5.50-to-$5.90/kgMS, and both Synlait Milk and Fonterra Cooperative Group at $6/kgMS. Dairy NZ currently estimates the average farmer will break even at a milk price of $5.05/kgMS. . . 

Lamb flap prices rise to 20-month high as higher Chinese demand meets lower NZ supply – Tina Morrison:

(BusinessDesk) – Prices for the humble lamb flap are on a tear, hitting their highest level in 20 months, driven by increased demand from China and lower supply from New Zealand.

While prices for a leg of lamb in the UK and beef for meat patties in the US are being impacted by weak demand, the price for lamb flaps rose to US$5.10 per kilogram in November, from US$4.70/kg in October and US$3.80/kg for the same period a year earlier, according to AgriHQ’s latest monthly sheep & beef report. That’s the highest level recorded by AgriHQ’s since March 2015. . . 

Major dairy farming portfolio placed on the market for sale:

One of New Zealand’s larger private-structured dairy farming operations – producing some $8.5 million worth of milk a year – has been placed on the market for sale.

The portfolio of Otago farms encompasses four stand-alone dairying operations located some 15 kilometres south-west of Oamaru. They are owned by Oamaru-based company Borst Holdings Ltd.

Combined, the 992 hectares of land produce a whopping 1,418,000 kilograms of milk solids annually from a herd of 3380 animals. The four operations within the portfolio are:
• Pleasant Creek Farm – a 321 hectare property split into 42 paddocks, milking 980 cows. The farm has five dwellings – including a five-bedroom executive style homestead, a four-bedroom manager’s residence, a second four- bedroom dwelling, and a trio of two-bedroom staff quarters in various configurations. . . 

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Rural round-up

April 29, 2016

Trade negotiations like water dripping on a stone – Allan Barber:

Before he left for China last week, New Zealand’s Special Agricultural Trade Envoy, Mike Petersen, gave me his thoughts on the process of trade negotiation and a brief list of successes he has been involved with since 2003. At that time he was Chairman of Meat & Wool NZ as it was called in those days.

During that 13 year period New Zealand has signed free trade deals with Taiwan, China, ASEAN which comprises 12 countries and at long last South Korea, not to forget the TPPA. No wonder he called trade negotiations ‘like water dripping on a stone.’ Signing FTAs is never quick and demands a huge amount of manpower, preparation, patience and recognition no country ever gets everything it wants.

The reaction to the TPPA, not only here, but also in other signatory countries, notably the USA, indicates a growing feeling of disaffection with free trade deals because of the perceived loss of sovereignty they entail, including domestic employment opportunities, and conversely the benefits to big business. . .

Food ‘knowledge gap’ creates dangers for farmers:

Does a cow need to have a calf to give milk?

The answer should be obvious, but more than 70% of consumers get the question wrong explains University of Guelph associate professor Mike Von Massow. A majority of Canadians also believe that a chicken is processed for meat when it reaches four years of age.

Von Massow shared these findings from his research on consumer perceptions of food at the Farm & Food Care Ontario annual meeting earlier this month. While many of the findings are troubling for agriculture there is also reason to be optimistic. “Consumers feel pretty good about the food they eat in Canada. Generally they believe they have safe, healthy food and they trust farmers,” says Massow. . .

Tribal councils appeal farmers’ discharge consents – John Gibb:

A decision by independent commissioners to grant a consent for a North Otago farmer from 2020 to discharge nitrogen from three farms on to land ‘‘in a manner that may enter groundwater” has been appealed to the Environment Court.

The consent application from Borst Holdings Ltd was the first to be made under Otago’s new 6A water plan change, which concerns itself with the amount of nitrogen being released into the area’s rivers.

The consent for the Borst farms, near the Kakanui River, was granted for 15 years starting from April 1, 2020. . . 

Dairy farmers will pay for next five years say John Mulvany:

MURRAY Goulburn has sheltered farmers from the real global milk price and they’re going to pay for five years, according to a leading consultant.

Gippsland-based consultant John Mulvany said the effect of the overpayment for milk in 2015-16 will result in the deduction of the equivalent of 24 cents a kilogram of milk solids from milk supply during the next three years, or $36,000 a year for a 150,000kg/MS farm, to pay back for this season’s mistake.

“The late notification is absolutely inexcusable,” he said.

“It is not fair to the MG field staff who, until mid-December, were issuing income estimates with three step-ups leading to a milk price over $6 a kilogram of milk solids. . . 

Sweet opportunities in honey industry for locals:

Today marks the first day of work for 11 Work and Income clients, who will be developing Northland College’s mānuka plantation site.

30 hectares of mānuka will be initially planted on Northland College land – an initiative that provides current and future employment opportunities for Kaikohe people.

The Northland College Mānuka Initiative stems from the Tai Tokerau Northland Economic Action Plan which identifies 58 actions for stimulating the Northland economy. . . 

Horticulture Welcomes Dam Progress:

Horticulture New Zealand has welcomed the announcement of the progress made in funding for the Ruataniwha Dam project in Hawke’s Bay.

The horticulture industry is reliant on sensible management of freshwater in New Zealand and the provision of water for future generations of primary sector business is essential.

“This will see the number of growers increase, and this in turn will improve the sustainability of the proposal,” HortNZ natural resources and environment manager Chris Keenan says. . . 

Expect more gains in nutrient management says Ballance:

Ballance Agri-Nutrients is confident that Sustainable Dairying: Water Accord targets around nutrient data collection and efficiency reporting will continue to lift as more farmers understand the direct benefits to their farms and their OVERSEER® nutrient budgets.

Commenting on the release of Accord results yesterday, Ballance CEO Mark Wynne said that while results had fallen short of targets for nutrient management data and the reporting back of nutrient efficiency information, good progress is being made.

The target is for all dairy farms to provide quality nutrient management data. Progress is currently sitting at 75 percent, up from 56 percent last year. . . 

New online financial problem-solving platform for farmers: ASK Crowe Horwath:

Earlier this month accounting and business advisory firm Crowe Horwath announced the launch of the online platform, ASK Crowe Horwath.

ASK Crowe Horwath, an obligation-free, online financial problem-solving service allows questions to be posed by New Zealand agribusinesses and individuals that are then answered by Crowe Horwath advisors – ‘get a real answer from a real advisor’ is indeed the tagline of the platform.

There are no boundaries to the questions that can be asked, with rural professionals covering the full spectrum of financial services. . .

Debbie Kelliher's photo.


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