Rural round-up


The sheep industry outperforms Fonterra. True or false – MIiking on the Moove:

Sheep farmers receive 44% of the retail price of their products. So if a portion of lamb retails for $100 the farmer will receive $44.

The sheep industry is struggling with low profitability. The last 20 years has seen sheep farms converting to dairy because they offer a higher return.

Among sheep farmers, there seems to be an attitude that their meat companies are doing a poor job of marketing & selling lamb, both domestically and internationally.

There is a cockiness among dairy farmers around the returns the dairy industry are making. They seem to think the reason for the industries success is because they have an outstanding level of awesomeness and that the people running Fonterra posess superior business acumen, compared to the sheep industry.

I often hear both sheep and dairy farmers comment that, if the meat industry could just replicate Fonterra, then the industry would be a success. . .

CPP to bet on NZ dairy?–  Offsetting Behaviour:

This, I like.

Recall that Canada runs a ridiculous dairy cartel. When I teased the Dairy Farmers of Canada about the high price of baby formula in Canada, they said I wasn’t playing fair as Canada doesn’t even produce baby formula; it’s all imported. Meanwhile, Chinese companies are set to invest a few hundred million adding to New Zealand’s already extensive capacity in that area.

But Canada has the world’s best dairy system, if you ask the guys running the cartel.

What happens if you ask the Canadian Pension Plan Investment Board?
Mark Wiseman, chief executive of the $A170 billion fund, will visit Australia this month amid the group’s expanding portfolio of interests across the Tasman. …

Canadians look south to invest in agriculture:

Canadian investment funds have big plans to become involved in Australian land, ports and other infrastructure projects, driven by food export potential.

The Canadian Pension Plan Investment Board has set up a team to examine opportunities.

Mark Wiseman, chief executive of the $A170 billion fund, will visit Australia this month amid the group’s expanding portfolio of interests across the Tasman.

Canada’s pension system has total funds of $A1 trillion. Other funds have also shown an interest in Australia.

Investors are being forced to search for higher returns outside the old northern hemisphere markets.

Mr Wiseman says he anticipates low growth in Europe and the US for years. He believes agriculture offers huge potential.

“Australia is one of the jurisdictions [where] we’re looking at the agricultural industry broadly, right from land on up through the infrastructure to support it, including things like ports,” he says in the UBS Global Leaders Insights Series on Sky News Business. . .

DairyNZ Farmers’ Forum takes science to the regions:

DairyNZ’s latest research will be showcased at a nationwide series of Farmers’ Forum events during April and May.

The informative and practical seminars will be held in Whangarei, Hawera, Woodville, Invercargill and Greymouth.

DairyNZ chief executive, Dr Tim Mackle, says each year the Farmers’ Forum provides a great opportunity for dairy farmers to see how their levy is invested and to learn about dairy industry research and development work relevant to their region’s farming issues.

“Our Farmers’ Forum has become an annual gathering and every second year we go out to the regions and customise forum topics based on locally relevant issues,” says Tim. . .

New Zealand Employers Commends Solomon Islands Seasonal Workers:

Solomon Islands Minister for Foreign Affairs and External Trade, Hon Clay Forau was pleased to hear positive feed backs and comments from various Employers in New Zealand on the work output and performances of Solomon Islands nationals employed under the Recognized Seasonal Employers Scheme.

‘I am pleased as well as the Government to hear that our workers are doing well in New Zealand’, says Minister Forau. Our workers are settling in well and are adjusting to the New Zealand culture and environment.

On Monday, the Hon Minister and his delegation were in Nelson on New Zealand’s South Island, where they met with two of the employers and both have commended highly Solomon Islands seasonal workers. . .

A2 Corporation added to NZX 50 Index:

A2 Corporation Limited (“A2C” or the “Company”) is pleased to announce that the Company will be added to the NZX 50 Index, effective at market open on Monday 18th March 2013.

The Company moved from the NZAX to the NZX Main Board on 7th December 2012, following the successful completion of the December equity raising.

A2C’s Managing Director Geoffrey Babidge said “inclusion in the NZX 50 Index is an important milestone in the Company’s development and over time should help continue to broaden the shareholder base and increase overall investor awareness of A2C. “ . . .

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