Rural round-up

October 20, 2012

Kiwifruit breeder honoured for $3 billion contribution:

The inaugural kiwifruit industry award – the Hayward Medal – was presented last night to a kiwifruit breeder whose work has added around $3 billion to the industry and the New Zealand economy, Russell Lowe from Plant & Food Research.

The new award is named after another great horticulturalist and kiwifruit breeder, Hayward Wright, whose innovation and contribution established the industry. The kiwifruit Industry Advisory Council (IAC) established the Hayward Medal and IAC chairman Bruce Cameron presented Russell with the award at Zespri’s kiwifruit industry conference Momentum, saying his work defined the kiwifruit industry. . .

Commission releases draft report on first statutory review of Fonterra’s milk price manual

The Commerce Commission has today released a draft report on its first statutory review of Fonterra’s milk price manual. The manual determines how Fonterra calculates the farm gate milk price, which is the price paid by Fonterra to dairy farmers for their raw milk.

This is the first of two statutory reviews that the Commission is required to undertake each milk season under the 2012 amendments to the Dairy Industry Restructuring Act 2001 (DIRA).

This first statutory review requires the Commission to report on the extent to which Fonterra’s milk price manual is consistent with the purpose of the milk price monitoring regime. The purpose of the regime is to promote the setting of a farm gate milk price that provides incentives for Fonterra to operate efficiently while providing for contestability in the market for the purchase of milk from farmers. . .

Why co-operatives in farming? – Anti-Dismal:

A few days ago Ele Ludemann at the Homepaddock blog noted that Co-ops key to feeding world and in a sense she is right. Co-ops are more common in argiculture than any other sector of the economy. The big question is Why?

To see why start from the idea that there are two basic ways to organise production, via contracts or via ownership. So what are the costs of each? First consider the costs of contracting. In farming one reason for the formulation of co-operatives was monopsony power. Farming is a business with many producers of highly homogeneous commodities. It is one of the most competitive of all industries. In contrast, the middlemen-handlers and processors – who purchase farm products are often highly concentrated and hence have the potential for exercising a degree of monopsony power over the farmers they deal with. Such monopsony power can be accentuated by seasonality or perishability of agricultural products. . .

Moovers and shakers in dairy industry – Linda Clarke:

Rakaia dairy farmers Rebecca and Brent Miller live in a fish bowl.

Their 1070-cow farm borders State Highway 1 just north of the Rakaia overbridge, and every man and his dog can see what they are up to.

Rebecca says the couple jokes about living in the limelight, but they farm with pride, knowing the cows and land they manage are scrutinised regularly by passing dairy farmers and are often photographed by tourists, who are taken by the green grass, black and white cows and snowcapped mountains. . .

Meatworks plans for Chathams – Gerald Piddock:

The viability of a meat processing plant on the Chatham Islands will be decided by its farmers later this month following the completion of a study into the feasibility of the facility.

The study was finished last Friday and will be presented to the Chatham Islands Enterprise Trust committee later this week.

From there it will be discussed with the islands’ farmers and other interest groups over the next fortnight, Chatham Islands Enterprise Trust chief executive Brian Harris said. . .

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