Rural round-up

November 1, 2018

The sun must never set on New Zealand’s agriculture – Keith Woodford:

 These are increasingly troubled times for New Zealand agriculture. A significant proportion of the population has turned against farmers for environmental reasons relating to nutrient leaching and water quality. There is also a loud political narrative about methane from ruminant animals and the need to reduce livestock numbers.

There is also a group of agricultural doomsayers who state that new plant-based foods and even totally artificial foods can mimic meat, and that they will do so at much cheaper cost than the real thing. And finally, there is an increasing group of consumers who are committed to vegan diets for perceived health reasons or relating to personal ethical perspectives. . . 

On the home straight to CPTPPP benefits:

It’s been a long and sometimes bumpy road to achieving a Pacific Rim trade deal but New Zealand producers and our economy will soon reap the benefits, Federated Farmers President Katie Milne says.

“We’re on the home straight. The required six nations have now ratified the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the countdown has started towards the first round of tariff cuts early next year. . . 

CPTPP move momentous for NZ:

ExportNZ says today’s CPTPP ratification by Australia is a momentous day for New Zealand.

Australia’s ratification today of the Comprehensive and Progressive Trans-Pacific Partnership has now delivered the quorum required to start the process leading to the CPTPP taking force.

ExportNZ Executive Director Catherine Beard says the CPTPP deal, a tantalising prospect for years, will now become a reality by the end of this year. . .

Bee Keepers Can Now Check Seasonal Weather Outlooks Against High Resolution Land Cover:

Summer likely to lack widespread monthly extremes in temperature and precipitation

The rapidly growing honey industry in New Zealand has had some weather challenges over the last few years. As Karin Kos noted regarding the 2017 season ‘very dry and windy weather was not conducive to honey and due to the nature of the industry unfortunately it is weather dependent’. Bees also find different land covers to exploit depending on the weather with pastures, indigenous forest and manuka/kanuka forests if made available being just a few examples of how bees can change their diet when weather vagaries occur
. . .

Guy Trafford summarises the debate around how we should deal with methane emissions, and introduces you to the global regulation of SLCPs:

The issue around methane is not going to go away. In the last couple of days two respectable and well known identities have commented.

Phil Journeax, currently with AgFirst and previously with MPI as an economist, and Rod Oram a well-known commentator particularly on things rural. They have both tackled the issue around methane, and climate change from different angles.

Largely both correct but could be talking about two totally different things. Confused? It’s likely to get a lot worse before it gets better.

Cars or lisevstock which contribute more to climate change? – Anne Mottet and Henning Steinfeld:

The pitfalls of simplification when looking at greenhouse gas emissions from livestock What we choose to eat, how we move around and how these activities contribute to climate change is receiving a lot of media attention. In this context, greenhouse gas emissions from livestock and transport are often compared, but in a flawed way. The comparison measures direct emissions from transport against both direct and indirect emissions from livestock. The Intergovernmental Panel on Climate Change (IPCC) identifies and monitors human activities responsible for climate change and reports direct emissions by sectors. The IPCC estimates that direct emissions from transport (road, air, rail and maritime) account for 6.9 gigatons per year, about 14% of all emissions from human activities. These emissions mainly consist of carbon dioxide and nitrous oxide from fuel combustion. By comparison, direct emissions from livestock account for 2.3 gigatons of CO2 equivalent, or 5% of the total. They consist of methane and nitrous oxide from rumen digestion and manure management. Contrary to transport, agriculture is based on a large variety of natural processes that emit (or leak) methane, nitrous oxide and carbon dioxide from multiple sources. While it is possible to “de-carbonize” transport, emissions from land use and agriculture are much more difficult to measure and control. . . 


Rural round-up

September 5, 2017

NOSLaM meeting: 

Randall Aspinall, from Mt Aspiring Station, will speak at a North Otago Sustainable Land Management Group meeting at Five Forks on Thursday.

He will discuss the challenges of being a high country farmer in the Wanaka area and share lessons that had been learned.

NOSLaM was revived several years ago by a group of farmers who were keen to improve water quality and promote good pastoral management practices. . .

Water scheme grew from ground up – Hamish MacLean,

In the 1950s, rural water schemes sprang up in North Otago but the 1989 local government reform, and then progressively stringent legislation aimed to improve drinking-water standards, started to take the control of water schemes away from the farmers who used them.

This winter, after a three-year trial, a community-led non-profit company signed a five-year agreement with the Waitaki District Council to manage four rural water schemes from the grass-roots, Hamish MacLean reports.

Corriedale Water Management Ltd was formed when the Waitaki District Council rewrote its water bylaw four years ago.

A “fundamental” philosophical difference separated the way its users wanted to operate and the way council-owned water schemes were expected to work, chairman Bill Malcolm, of Airedale, said. . .

Does OAD lift productivity?:

In their quest to increase six-week in-calf rates, a growing number of farmers are looking at once-a-day (OAD) milking as a way to improve herd reproductive performance. How effective is this strategy?

The success of taking this approach depends on how long cows are milked OAD before mating. It’s important to note that the benefits of whole-season (or full lactation) OAD on herd reproduction don’t necessarily translate to the use of short-term OAD milking around mating. . . 

Vivid flavones from a vivid country – Joelle Thomson:

Wine writer Jamie Goode says simplicity is key in communicating New Zealand wine to global markets.

The British blogger visited New Zealand to speak at the country’s second Organic and Biodynamic Winegrowing Conference in Marlborough in June this year. His message was emphatic.

“You will maintain an edge in international markets by sticking to a simple clear marketing message going forward in the same way as you have done in the past with Sauvignon Blanc from Marlborough. It’s consistent, reliable and there are no nasty surprises. . .

ExportNZ has released its manifesto for the 2017 election:

ExportNZ Executive Director Catherine Beard says exporting is critical for the economy and voters should choose a Government that supports trade.

“The single biggest policy issue is whether there is support for TPP-11 and other key potential trade deals. These have the best practical ability to grow jobs and incomes,” Catherine Beard said.
Exporters wanted to see a Government keeping the pressure off the New Zealand dollar by balancing the budget and keeping interest rates low through a focused target on inflation. . .

Export vital for New Zealand’s prosperity:

Support for TPP11 and the wider trade agenda by the incoming government is crucial for New Zealand now and in the future, says the EMA.

The need to speed up the growth of exporting was one of the key recommendations in the EMA 2017 Election Manifesto.

“As a nation we rely heaving on trade for jobs and growth. With a population the size of ours, we need a vibrant exporting sector for New Zealand’s prosperity, says Kim Campbell, CEO, EMA. . .


Rural round-up

August 18, 2017

Why will the least swimmable rivers receive less funding for clean up?:

Labour – Let’s answer this – why will regions with the least swimmable rivers receive less funding to clean them up?

IrrigationNZ is continuing to challenge the logic of Labour’s water tax proposal, after finding that regions with more swimmable rivers will receive more funding from the water tax, while those with the least swimmable rivers will receive less funding to clean up rivers.

“We pointed out to Labour in our meeting with them yesterday that region’s with more irrigated land actually have more swimmable rivers, while areas with lower proportions of irrigated land have more rivers graded poor for swimming,” says IrrigationNZ Chief Executive. “The data doesn’t support the idea that irrigation is a main cause of river pollution.” . . 

MPI wins farmers’ praise for cow disease response – Gerard Hutching:

Federated Farmers have given government officials grappling with the cow disease Mycoplasma bovis a pat on the back for their efforts in dealing with the issue.

Biosecurity spokesman Guy Wigley said farmers who met in Waimate last week to hear the Ministry for Primary Industries’ (MPI) latest update were impressed by the scope of what was being done.

“They are getting a huge number of tests done over the next month – 33,000. Farmers were impressed with the professionalism of the staff.” . .

Murray Grey cattle first choice for King Country breeder :

Bringing a cold young lamb inside on a cold spring mornings is a good excuse for a cold young farmer to take a break too.

It has been a wet season on Mike Phillips’ Honikiwi farm about 15 mins northwest of Otorohanga.

“The past month has been really busy and the weather’s not playing ball at all this week. I’ve come in to heat up a lamb so it’s a welcome chance for me to dry out too. I’m feeding about 30 orphan lambs at the moment so we’re in a bit of a routine.”

It’s a far cry from the day he named his murray grey cattle stud – Paradise Valley Murray Greys. . . 

McClay – Government approves TPP11 mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on.

“TPP11 ministers have committed to moving forward with the agreement as quickly as possible,” Mr McClay says. . . .

Commitment to TPP11 applauded:

New Zealand’s mandate to negotiate for the new Trans Pacific Partnership (TPP11) is good news, says ExportNZ.

New Zealand has taken a prominent role in moving the agreement towards completion following the US decision to withdraw from TPP negotiations this year.

ExportNZ Executive Director Catherine Beard says it is positive that all 11 members of the TPP group have agreed to stick closely to the terms of the original TPP agreement and are moving at pace towards concluding the agreement. . .

Dairy industry body joins GIA biosecurity partnership:

The Dairy Companies Association of New Zealand (DCANZ) has become the fifteenth and largest industry sector to join the Government Industry Agreement (GIA) biosecurity partnership, Primary Industries Minister Nathan Guy has announced today.

DCANZ is the national organisation representing the dairy processor and exporters sector, comprised of 11 members responsible for 99% of the milk processed in New Zealand.

“It’s very pleasing to have DCANZ working with the Ministry for Primary Industries and other industry partners on biosecurity,” says Mr Guy.

“The dairy industry is a crucial part of New Zealand’s economy, making up over a third of all New Zealand total exports. It is vital we work together to prepare and respond to biosecurity threats. . .

Silver Fern Farms Announce Winners of the Inaugural Plate to Pasture Youth Scholarships:

Silver Fern Farms has awarded six Plate to Pasture Youth Scholarships to an exciting group of young people from around New Zealand who are developing their careers in the red meat, food and farming industries.

Silver Fern Farms Chief Executive Dean Hamilton says the talent emerging from the scholarship applications indicates a bright future for the broader red meat sector. . . .


Get in behind trade

July 10, 2017

Export New Zealand is challenging all political parties to get in behind trade:

ExportNZ says all political parties should be supporting international trade.

ExportNZ today released a report analysing the benefits to all New Zealanders from freely traded exports and imports. The Benefits of Trade shows that New Zealand’s export sector directly and indirectly accounts for nearly three quarters of a million jobs, and that exports bring in 43 percent of New Zealand’s GDP.

“This is a massive chunk of our economy. Without exports we would literally be a third world economy,” said ExportNZ Executive Director Catherine Beard.

“New Zealand exporters – manufacturers, primary producers and technology and services exporters – earn the foreign exchange that pays for all the good things we enjoy. Without a vibrant export sector, we would not be able to afford the infrastructure, health, education and welfare services that are the mark of a first world nation.

Exports enable us to pay our way in the world.

We can’t afford imports unless we successfully export.

It’s not just luxury goods but basic requirements for first world living standards including health supplies, machinery and the food we can’t grow ourselves that we need to buy from other countries.

The money to buy those goods come from our exports and the freer we are to trade the better off we all are.

“We have a brilliant export sector keeping our economy afloat, and we should all be supporting it.”

Catherine Beard said with the approach of the 2017 Election, it was important to hear from all political parties on how they would support trade and free trade agreements with other nations.

“It’s time for all political parties that want a higher standard of living for Kiwis to get in behind New Zealand being a participant in high quality free trade agreements wherever in the world we can get them.

Catherine Beard says in a world of increasing protectionism it is important for all political parties to be united behind an ambitious free trade agenda, because the benefits to New Zealand are overwhelmingly positive.

“The data indicates that in a world where free trade was the norm, New Zealand’s GDP would be $18 billion higher, with an additional 62,000 jobs.”

Key points on the benefit of trade:

 The tradable sector directly and indirectly accounts for $85 billion (43%) of New Zealand’s real
GDP and almost three-quarters of a million jobs.
 Trade helps Kiwi households buy higher quantities of goods and services with their wages, and
lets them access a wider variety of products.
 The gains to New Zealand households from improved product choice from trade alone come
to $3.9 billion, or around $2,300 per household, based on estimates from the literature.
 One US study estimates that trade contributes about 30% of an average US household’s
purchasing power. In New Zealand this share would be far higher, given how trade-reliant we
are compared to the US.
 When tariffs were removed in the late 1980s in New Zealand, import prices dropped sharply,
boosting Kiwi households’ purchasing power by 2%.
 Further multilateral trade liberalisation would deliver huge benefits to New Zealand: the OECD
estimates that New Zealand’s real GDP would increase by $18 billion over the long run if G20
tariffs and non-tariff barriers were halved. This scenario would also create over 42,000 skilled
jobs and 20,000 low-skilled jobs.
 ‘Trade policy’ is now about much more than reducing border tariffs on trade in goods:
services, investment, global value chains, non-tariff measures, people movements and the
flow of technology are hugely important.
 Global services trade liberalisation has been estimated to potentially lift New Zealand’s per
capita GDP by over $1,000 by 2020.
 A comprehensive Trade Facilitation Agreement which reduces red tape associated with trade
could reduce trade costs by 14.5% globally and boost global GDP by between US$345 billion
and US$555 billion per year.
 The reduction of non-tariff measures could deliver significant gains for New Zealand. The cost
to New Zealand exporters of these measures in the APEC region has been estimated at $8.4
billion.
 Around 70% of the economic benefits accruing to New Zealand from the TPP are estimated to
come from a reduction in non-tariff barriers.
 There are some valid concerns about how the benefits from globalisation are shared, but its
positive impacts are undeniable: the World Bank states “The number of people living in
extreme poverty around the world has fallen by around one billion since 1990. Without the
growing participation of developing countries in international trade, and sustained efforts to
lower barriers to the integration of markets, it is hard to see how this reduction could have
been achieved”.
 Addressing New Zealanders’ concerns about globalisation and the future of regional economic
integration in will require more detailed research into the benefits and trade-offs involved in
‘new’ trade issues, and continued reminders about the costs to households of more
isolationist policy settings.

Anyone old enough to remember what life was like in New Zealand before the trade liberalisation of the 1980s and 90s won’t want to go back there.

Domestic goods were usually more expensive and of inferior quality to imports.

Imported goods were in short supply and usually had inflated prices owing to tariffs.

People didn’t travel as easily or often as they do now and when they did they returned laden down with goods which were not available or far more expensive here.

Any policies which limit trading opportunities for exporters or hamper the ready access to imports will hurt us all, and the people who will be hardest hit will be the poor.

With freer trade we all benefit and can even sell avocados to Mexico.


Rural round-up

September 16, 2015

Deal will change face of industry – Dene Mackenzie:

Silver Fern Farms aims to be debt free with money in the bank by this time next year if a deal to form a 50:50 joint venture with Chinese food giant Shanghai Maling gets shareholder approval.

Silver Fern Farms chairman Rob Hewett remained optimistic yesterday the deal would receive the required 50% shareholder support and the company is offering significant sweeteners to persuade shareholders to vote yes.

The deal would allow Silver Fern Farms to become unleashed, he said.

Mr Hewett’s presentation to a media conference was peppered with phrases such as ”turbo-charged” and ”compelling”. . . 

 

Shock waves from Silver Fern Farms will now pulsate through the industry – Keith Woodford:

Five months ago I wrote that whatever happened at Silver Fern Farms, it would be like an earthquake within the meat industry. Given that Silver Fern Farms is New Zealand’s largest meat company, and with the status quo unsustainable, it could not be any other way.

The offer that has now come forward from Shanghai Maling is remarkable. This offer, once regulatory approvals are received, will change Silver Fern Farms from being large but financially very weak, to being large and financially very strong.

Apart from mid-season working capital, Silver Fern Farms will be debt free and with cash in their war chest to ‘take it’ to their competitors. . . 

Alliance reaches out to Silver Fern suppliers – Dene Mackenzie:

Invercargill meat processor Alliance Group wasted no time yesterday in trying to woo disgruntled Silver Fern Farm suppliers after Silver Fern announced a joint venture with a Chinese company.

Alliance chairman Murray Taggart said it was important for New Zealand farmers to retain ownership of their industry and the best way to achieve that would be to supply Alliance as the only remaining major co-operative.

Alliance also muddied the water somewhat by saying it submitted a bid for Silver Fern before Silver Fern’s capital-raising process got under way as part of ongoing discussions with the Dunedin group. . . 

Beef and Lamb expects farm profits to rise – Dene Mackenzie:

New Zealand ”average” sheep and beef farmers are in for a profit lift and Beef and Lamb chief economist Andrew Burtt calls it positive news at a time when the economy would benefit from increased farm sector spending.

Beef and Lamb predicted the average sheep and beef farm would see its profit before tax lift to $109,000 this season – 9.6% more than last season but 3.1% below the five year average. . . 

Sheep meat marketing needs focus on premium – Simon Hartley:

Softening demand for sheepmeat in China and Europe should be prompting New Zealand to prioritise getting premium chilled lamb cuts in China, and to also look further afield to new Middle Eastern markets.

Softer overseas demand for New Zealand sheepmeat, particularly from China, had curtailed New Zealand sheepmeat producers’ returns in recent months, Rabobank animal protein analyst, Matthew Costello said in his recent report on the New Zealand sheepmeat industry.

While China’s imports had ”exploded on to the New Zealand sheepmeat export scene” in 2013, to become New Zealand’s largest sheepmeat trading partner, its own production had since grown to about eight times that of New Zealand. . . 

Large trade blocs good for NZ exports:

New Zealand’s refreshed priorities for international trade have been welcomed by ExportNZ.

The Government’s Business Growth Agenda on trade has been updated, with a focus on completing the Trans Pacific Partnership, achieving a free trade agreement with the European Union, and engaging more with emerging economies in Latin and South America.

ExportNZ Executive Director Catherine Beard said exporters welcomed the continued emphasis on TPP. . .

Swede test a first for NZ – Hamish Maclean:

The plight of Southern farmers last year has led to a first for New Zealand.

When 200 dairy cows died in Southland and South Otago and many more became ill, the cause – a naturally occurring compound in winter feed, swedes in particular, – could not be tested at any New Zealand commercial laboratories.

Now, commercial glucosinolate testing of plants is available in New Zealand, and that is good news for the dairy industry, Dairy NZ says. . . 

Farm prices hold up; MyFarm eyeing dairy opportunities – Fiona Rotherham:

(BusinessDesk) – Farm prices are holding up well on a drop in volume over the winter months, according to the latest Real Estate Institute of New Zealand rural farm sales data.

There were only three dairy farm sales recorded in the past month and the median sales price per hectare for dairy farms for the three months ended August fell to $26,906, compared to $35,304 for the three months ended July and $43,125 for the three months ended August 2014.

But the REINZ Dairy Farm Price Index, which adjusts for differences in farm size and location, rose by 17.3 percent in the three months to August, compared to the three months to July. . . 

Tests before tightening help protect farm fertility:

Soil tests should be the first step for farmers trying to managing budgets while maintaining pasture productivity.

Ballance Science Extension Manager, Ian Tarbotton, says keeping soils fertile is good insurance with pasture an essential feed source, but gut instinct or past experience won’t lead to good decisions on what to spend or save.

“Soil tests will show you what you have to work with and they are the best guide to decisions around a fertiliser budget. The last thing farmers want to do is to compromise future productivity, so understanding what nutrients are available now is the best basis for decisions on fertiliser budgets.” . . 


Rural round-up

April 20, 2015

Future of the heartland – Dr William Rolleston:

When we think of the Heartland we conjure up images of the rough and ready can-do farmer striding across the high country. But the farmer of the Heartland is not confined to this image.

Farming in the Heartland is a technically challenging career. I am in constant awe of my fellow farmer, who every day must make complex decisions, dealing with the vagaries of weather, biology and the market. Like me, my grandfather also came to farming from medicine and for the rest of his life found incredible satisfaction in the scientific challenge farming brings.

The Heartland has contributed enormously to New Zealand and our development as a country. This month we commemorate 100 years since New Zealand’s recognised baptism of fire.

Farmers contributed their horses and their sons to the war effort. Almost every horse and many of our men never returned. Back in New Zealand the production of food and fibre had to continue apace. We remember the past but we also must look to the future. The future of the Heartland. . .

 Award-winning agriculture student gets the job done – Kate Taylor:

Kahlia Fryer wants to own her own farm one day and she’s likely to make it if her work ethic to date is anything to go by.

As well as studying and working fulltime as president of the Lincoln University Students’ Association, she has 41 high-breeding-worth heifer calves that are in the top 5 per cent of New Zealand crossbreds and destined for her father’s herd.

Fryer won the Lawson Robinson Hawke’s Bay A&P scholarship at the recent Hawke’s Bay Primary Industry Awards  – chosen as much for her extensive work experience as her wish to succeed in agriculture and to encourage others into the industry, according to one of the judges.  . .

Grower tops veggie patch:

Pukekohe grower Hamish Gates  has beaten off tough competition from four finalists to be crowned New Zealand Young Vegetable Grower of the year.

Gates had the home turf advantage in the Horticulture New Zealand competition at Pukekohe on April 16 where finalists competed in a series of practical and theoretical challenges  to test their skills needed to run a successful vegetable growing business.

Gates, 24,  works at AS Wilcox & Sons as a carrot washline supervisor and won a $2500 travel grant for professional development and other prizes. As the vegetable grower titleholder he will travel to Christchurch to compete for the national Young Grower of the Year title in August. . .

Game of two halves for 2015 Grain Harvest :

The 2015 Grain Harvest has been a game of two halves, according to survey results released by the Arable Industry Marketing Initiative (AIMI).

Federated Farmers Grain and Seed Vice-Chairperson, David Clark, says “Whilst drought conditions during the growing season has reduced the yields on dry land that has been balanced out by improved yields on irrigated land resulting in total harvest yields being very similar to 2014 across all grains.”

“The survey shows the large surpluses of unsold grain in the previous 2013 season have well and truly gone, however available stocks of grain are very similar to last season which leaves the NZ Industry well placed to provide domestically grown feed to assist in drought recovery.” . . .

Paul Whiston appointed CEO of LIC Automation:

LIC has appointed Paul Whiston as chief executive of its new subsidiary business, LIC Automation.

Paul Whiston, originally from Rotorua, was previously head of sales and marketing for Paymark Ltd, the bank-owned payment network operator, where he was also acting chief executive for a time.

Prior to that, he was based in London as general manager international for Simpl, a New Zealand information technology professional services company. . .

 

ExportNZ welcomes introduction of U.S. legislation to facilitate trade agreements:

ExportNZ Executive Director Catherine Beard says the introduction of bipartisan legislation in Congress to re-establish Trade Promotion Authority (TPA) – trade legislation that facilitates the negotiation and implementation of U.S. trade agreements – is welcome news.

“There is still work to be done to pass this legislation, but this is an important step in that direction. We understand we are close to the final stages of the TPP negotiation.  . .

 


Manufacturing expands for 21 months

July 11, 2014

Once more the statistics don’t support the opposition’s manufactured manufacturing crisis:

The manufacturing sector remains in expansion mode, despite some aspects of the results that need to be watched closely in the months ahead, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 53.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.7 points higher than May, with the sector now being in expansion for 21 consecutive months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the slight lift in expansion levels was obviously welcome, albeit with a few head winds for manufacturers.

“Overall production levels remain healthy, and have been very consistent for the last three months. Employment levels continue to show more people entering the sector, while the largest proportion of comments received are still positive.

“As mentioned last month, the fundamentals of both the PMI and other indicators of the economy still point to positive activity. However, the continued strength of the New Zealand dollar, as well as new order levels continuing to fall, mean there are elements of the sector that need to be watched closely in the months ahead.

BNZ senior economist, Craig Ebert says “Wading through the manufacturing component of the latest QSBO, while there are clear hints of moderation, it seems mainly a settling down into normal growth patterns rather than any sort of stalling. We get a similar impression for the recent PMI levels and trends, with its weak spot seemingly concentrated in new orders.” . . .

Business is never easy but 21 successive months of expansion with the dollar providing a head wind is a sign of the sector’s strength.

 


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