Rural round-up

December 15, 2014

Commission releases final report on statutory review of Fonterra’s 2014/15 Milk Price Manual:

The Commerce Commission today released its final report on its statutory review of Fonterra’s Milk Price Manual (the Manual) for the 2014/15 dairy season. The Manual sets out the rules for how Fonterra will calculate the amount it will pay dairy farmers for raw milk this season. This is called the base milk price.

The Commission is required to report each dairy season on the extent to which the Manual promotes the setting of a base milk price that provides incentives for Fonterra to operate efficiently, while providing for contestability in the market for the purchase of milk from farmers.

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

 

Fonterra back Mymilk for more milk:

Fonterra has today launched a separate milk sourcing subsidiary to grow market share in its New Zealand milk pool, and provide a new pathway to membership in the Co-operative.

Called mymilkTM, it will initially invite applications, from farms in the Canterbury, Otago and Southland regions that are not currently supplying Fonterra, for one year contracts, renewable for a maximum of five years, without the obligation to purchase Fonterra shares. At any time mymilkTM suppliers can apply to join the Co-operative, purchase shares and supply Fonterra directly.
Fonterra Chairman John Wilson said: “It is good for the Co-operative and the country for Fonterra to be the first name on the list for farmers considering their supply options. We know there are farmers who support the co-operative model, but are at the stage of development where sharing up is currently beyond their financial reach. . .

Fonterra Shareholders Council gives nod ‘with caveats’ to new milk supply plan – Fiona Rotherham:

(BusinessDesk) – The Fonterra Shareholders Council is “broadly supportive” of plans for the cooperative to start sourcing milk from South Island suppliers who are not also shareholders, with a couple of caveats.

Fonterra Cooperative Group, the world’s largest dairy exporter, yesterday announced a new milk sourcing subsidiary, mymilk, which would try to get milk in the Canterbury, Otago, and Southland regions where competition for milk supply is most intense from new suppliers on contracts on up to five years without the obligation to purchase shares. The feedback, particularly from new farmers who have recently spent a large amount of money converting farms to dairy, is that they can’t currently afford to now buy shares in the cooperative but would do so at a later date.

Shareholders Council chairman Ian Brown said the competition for milk supply at the farmgate was one of the biggest changes he’d seen in his farming career. “It’s a changed mindset to how to attract suppliers whereas in the old days it was what to do with new supply. That’s a mindset shift.” . . .

 

Mymilk likely to get up noses of Fonterra shareholders – Allan Barber:

Fonterra has launched a new company called mymilkTM which is specifically designed to attract supply from South Island dairy farmers who don’t currently supply Fonterra. The website says it’s cooperative, but that’s a bit hard to see when the supplier has no obligation to buy any shares within five years and only has to sign a one year contract.

The website also says somewhat cutely the company is ‘backed’ by Fonterra, when it is actually a wholly owned subsidiary. This new venture is no doubt directed at tempting Synlait and Westland suppliers to jump ship without having to stump up with any share capital (at least for five years).

It promises competitive payment – competitive with whom? Fonterra or one of the others? But it is not clear exactly how mymilkTM will avoid paying the same price or even a higher one (shades of meat industry schedule premiums) to secure a new sign up. Under Trading Among Farmers, it is expressly forbidden for Fonterra to have different classes of shareholders and under cooperative principles equality of payment is sacrosanct. . .

RBNZ sees 44% bounce in whole milk powder in 2015 – Paul McBeth:

 (BusinessDesk) – The Reserve Bank expects whole milk powder prices to rise by about 44 percent next year as the slump in global prices this year prompts less competitive processors to scale back their production in the face of smaller returns.

The central bank expects whole milk powder, which is New Zealand’s dominant dairy export, to rise to US$3,200 a metric tonne by early 2016, from its current price of US$2,229/tonne as international producers who were lured by record prices last year are squeezed out by this year’s decline, governor Graeme Wheeler told Parliament’s finance and expenditure select committee after this morning’s monetary policy statement.

New Zealand’s advantage is that it’s the most competitive dairy producer in the world and can operate with lower prices than its rivals, he said. . .

 

Sponsors provide choice cuts for Gate-to-Plate competition:

Cabernet Foods is the latest Gate-to-Plate sponsor to offer competition organisers added value – over and above a core contribution.

The Gladstone-based company has said, for every lamb that any 2015 Gate-to-Plate contestant consigns direct to Cabernet Foods (from 21st February 2015 to 20th February 2016), the business will donate $1 to the Masterton A&P Association to help further develop the Gate-to-Plate competition.

Lyndon Everton, Cabernet’s Managing Director, says, “This competition has the ability to showcase the Wairarapa’s primary sector not only on local menus but also nationally.

“The Gate to plate attachment to the A&P show is a fantastic opportunity for the pastoral farmer to win the hearts and minds of their urban cousins.” . . .

Aotearoa Fisheries back in black in 2014 as Sealord returns to profit – Paul McBeth:

 (BusinessDesk) – Aotearoa Fisheries, which manages more than $530 million of fisheries assets for its iwi shareholders, returned to profit in the 2014 financial year after its major investment, Sealord group, was back in black after exiting its unprofitable South American business.

The Auckland-based company reported a profit of $21.9 million in the 12 months ended Sept. 30, turning around a loss of $6 million a year earlier, it said in a statement. That was largely due to a $12.7 million contribution from Sealord, which Aotearoa Fisheries jointly owns with Japan’s Nippon Suisan Kaisha. Sealord posted a loss of $44.3 million in 2013, reflecting a $46.9 million loss on the sale of its Argentine business.

“Aotearoa Fisheries own divisions were ahead of target which is pleasing under difficult operating conditions like the exchange rate and soft demand for paua in Asia,” chief executive Carl Carrington said. “This year our business will ramp up efforts in becoming a leader in sustainability which is wholly in line with our tikanga. There is no question that our long term future hinges on how well we perform in this area.” . . .

Wool Firm For Better Styles:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the 6,000 bales of North Island wool at auction this week saw a 95 percent clearance with good style wools holding their ground and poorer styles easing.

The weighted indicator for the main trading currencies was 0.56 percent stronger but had minimal impact on the market with supply/demand factors being the current market driver.

Mr Dawson advises that full length Fine Crossbred Fleece was firm to 3.5 percent dearer with shorter types generally firm to 2 percent easier. . .

 

 


Precision Seafood Harvesting unveiled

October 2, 2013

New Zealand technology is set to revolutionise the international fishing industry.

Imagine if every fish landed on a trawler was alive, in perfect condition and small fish, sharks and other species could be safely released underwater before a catch was lifted on-board.

The first underwater images ever released of revolutionary New Zealand fishing technology show how a partnership between New Zealand scientists and three Kiwi fishing companies will radically change the global fishing industry and make that a reality for wildfish harvesting.

The technology known as ‘Precision Seafood Harvesting’ does away with traditional trawl nets and, instead, sees fish contained and swimming comfortably underwater inside a large flexible PVC liner where they can be sorted for the correct size and species before being brought on-board the fishing vessel.

The break-through design of the harvesting system allows fishing vessels to target specific species and fish size and greatly increases protection for small fish that can swim free through ‘escape portals’ and non-target fish (by-catch), which are released unharmed.

 New Zealand Snapper in PSH Technology

Once on the deck, the fish are still swimming inside the liner, in perfect condition, meaning fresher, more sustainable fish for consumers and higher value products for fishing companies using the technology.

Precision Seafood Harvesting is the commercialisation phase of nearly ten years of New Zealand research. Fishing companies Aotearoa Fisheries, Sanford and Sealord are investing $26 million into the project under a Primary Growth Partnership with the New Zealand Government, which is matching the industry investment. Scientists at Plant & Food Research are partnering with the fishing companies to develop and trial the technology on commercial fishing vessels.

Sanford CEO and Chairman of Seafood New Zealand, Eric Barratt, who unveiled the new technology for the first time to the New Zealand fishing industry at its annual conference in Auckland today, says the Precision Seafood Harvesting programme was set up in April 2012 and will run for six years to commercialise new technology in the New Zealand fishing industry.

“This is the biggest step forward for commercial fishing in 150 years. What we’ve developed in New Zealand has huge benefits for fish stocks, the environment, consumers and New Zealand’s seafood industry. In the process we’re set to change the global fishing industry for the better.”

Alistair Jerrett, from Plant and Food Research says the new way of harvesting wildfish is a close collaboration between his team and the New Zealand seafood industry ‘who want to do things better’. “This is New Zealand science in action and the industry partners deserve a pat on the back for bringing fishing into the 21st century.”

Jerrett’s team built their own underwater cameras to see into traditional trawl nets. He says the ‘aha moment’ was asking: “Why do we have to strain these fish out, why do we have to exhaust them, why do we have to damage them during harvest – the new system changes all of that.

“One of the objectives is to make sure that any animal that reaches the surface, if we can’t select it out underwater, is delivered back to the sea unharmed.” He says this is true for bigger animals as well, like rays, sharks or any animal that is inadvertently captured.

“In terms of selectivity we design everything to make sure unwanted animals are discharged as fast as possible at depth – we don’t want them to even see the light of day.”

“When you realise you can design a highly selective harvest, you are winning in many different ways. You’re winning in unexplored properties, values we haven’t realised, and you’re producing a humane harvesting system.”

The head of Aotearoa Fisheries, Carl Carrington says it’s good news for sustainability by improving New Zealand’s credentials and “enhances our access to sustainability-conscious consumers, improves product taste and quality, and is good for value growth”.

That’s echoed by Sealord CEO, Graham Stuart who believes Precision Harvesting is an opportunity for New Zealand to ‘lead the world with another great kiwi innovation’. “Seeing Hoki landed from a depth of 300 meters, alive and in fantastic condition is remarkable and will totally change how our fish are brought to market.”

Sanford, Sealord and Aotearoa have been actively trialing the new technology on their fishing vessels for the past six months. Vessel Manager at Aotearoa Fisheries, Nathan Reid says fisherman onboard their vessels are excited about the condition of the fish when they are landed. “Replacing old trawl technology is really important for the industry. We’re going to see better stock recruitment and better stock in the water – it’s better for everyone.”

Sealord too is seeing the positive impact of the technology on its crews. Bill Healey is the Vessel Manager for Sealord. He says crews were sceptical at first, but that’s all changed. “When we talk to them now, when we see their reactions to the fish coming up, we know we’re onto something. I know we’re doing something unique and great when I look at the crews”.

Greg Johansson from Sanford says the new harvesting technology is just the start. “This will lead on to changes in vessel designs and layouts, the way we handle fish and get it to consumers. The opportunities are endless.”

“The customers should really enjoy the story of how this fish was caught, the sustainability, the environmental impact of this technology versus other forms of harvesting.

“This will increase the value of all New Zealand seafood products when the global markets see that we’re taking a big step forward by using a more environmentally-friendly way of harvesting fish.”

Recreational fisher and host of the popular “Gone Fishin” television show, Graeme Sinclair has seen the technology in action and says it’s ‘the future of commercial fishing.’ Sinclair says there’s a tendency with recreational anglers to assume that the commercial industry is not doing anything about problems such as dumping and mortality.

“I’ve seen some innovations and some clever buggers in my time, and I think this is revolutionary: it’s Kiwi, it’s clearly innovative, and what it does for mortality and for targeting specific species is incredibly exciting. It alleviates a whole lot of issues all in one hit.”

Primary Industries Minister Nathan Guy has welcomed the technology, which was developed through the Government’s Primary Growth Partnership (PGP) scheme.

“The Precision Seafood Harvesting project is developing new net technology which is world-leading. It has the potential for huge economic and environmental benefits. . . .

“New high-tech equipment is being developed, with the aim of allowing fish to be sorted by size and species before even leaving the water.

“This will allow smaller and non-targeted fish to escape, reducing wastage and by-catch. At the same time it allows fish to be landed healthier and in better condition, which will improve their value.

“Being able to target specific fish has the potential to revolutionise commercial fishing,” says Mr Guy.

This is an amazing development which will change the seafood industry internationally, make commercial fishing much more sustainable and provide a significant economic boost for New Zealand.


%d bloggers like this: