Rural round-up

September 29, 2018

Five things to know about the future of farming – Eloise Gibson:

Sir Peter Gluckman issued a flurry of reports in his last few months as Prime Minister’s science adviser. His final report to Jacinda Ardern made some striking points about the future of farming. Eloise Gibson digested the five main issues.

Methane matters

Don’t be fooled by anyone implying that methane doesn’t matter much in the scheme of things – cutting methane is crucial to New Zealand’s efforts to slow climate change. That, in essence, was one of the key messages from Gluckman’s final report to Jacinda Ardern.

Whether to ignore, eliminate or “stabilise” methane, the single biggest climate impact from cattle farming, has been major feature of debate about New Zealand’s proposed Zero Carbon Bill. . .

American farmers don’t need subsidies – Garland S. Tucker III:

Margaret Thatcher is said to have quipped, “The trouble with socialism is that eventually you run out of other people’s money.” New Zealand has discovered that this result may not be all bad. In the mid 1980s, New Zealand faced bankruptcy. The tab for years of socialistic policies had finally come due. The Labour government was forced to act quickly and drastically to cut expenditures. 

The New Zealand economy was — and still is — heavily dependent on agriculture. Farmers and farm prices had been subsidized for years through a multitude of government programs. In 1984, the government eliminated over 30 subsidy programs, not gradually, but overnight. The ruling Labour Party predicted an economic disaster. They foresaw a mass exodus of farmers and fully expected to be forced to reinstate some type of subsidy program . .

Central Otago shearer to receive recognition – Pam Jones:

Central Otago’s shearing industry will honour one of its own in a double-billing today.

Alexandra woolhandler and shearer Pagan Karauria will not only be recognised as a Master Woolhandler at the annual New Zealand Merino Championships, but will also feature in a film about the shearing industry being launched in Alexandra.

Karauria is profiled in the film She Shears, which is about five women working in the shearing industry. It will screen at the Otago Daily Times Theatre in the Central Stories Museum and Art Gallery this afternoon at 4pm.

She will be present for the screening and take part in a question and answer session afterwards. . .

Teddies, a trophy and Trans-Tasman rivalry – Pam Jones:

It features shearing and woolhandling royalty, alongside “teddy bear” novices.

And there is also some “good old-fashioned” transtasman rivalry to boot, as Australasia’s best compete at this weekend’s New Zealand Merino Shearing Championships in Alexandra.

Up to 200 shearers and woolhandlers were competing at the two-day event, including Damien Boyle, of Australia, who had won the event’s open shearing category seven times, event organising committee member Graeme Bell said. . .

NZ export log market hurt by US trade war with China: – Tina Morrison

(BusinessDesk) – New Zealand’s export log market took a hit from the trade dispute between the US and China as the declining value of the yuan crimps the buying power of the country’s largest log market.

The average price for New Zealand A-grade export logs dropped to US$133/JAS from US$141/JAS in August, and US$145/JAS in July, and is now the lowest since June 2017, according to AgriHQ’s Forestry Market Report for September. . .

Renewable diesel – an opportunity for the forest industry:

Most people in New Zealand are not aware that technology has been commercialised in the United States for the production of fully drop-in renewable diesel made from cellulosic feedstocks. This renewable diesel is a direct substitute for mineral diesel and meets all of the New Zealand specifications other than density (kilograms per litre). But it makes up for that by having a high energy density per kilogram so that the amount of energy per litre of fuel is equal to, or in some cases better than, that of fossil fuel diesel. . .

Cavalier to sell scouring interest, focus on carpets: – Gavin Evans:

Sept. 27 (BusinessDesk) – Cavalier Corp is close to selling its stake in New Zealand’s only wool scourer as part of a plan to reduce debt and free up capital to invest in carpet manufacturing.

The firm owns 27.5 percent of Cavalier Wool Holdings, alongside global giant Lempriere Wool, Accident Compensation Corp and Direct Capital. The scourer, known as CWH, operates plants in Napier and Timaru with a combined capacity of 100 million kilograms annually. . .

King Salmon braced for ‘disappointing’ fish farm relocation decision –  Pattrick Smellie

(BusinessDesk) – New Zealand King Salmon hopes it will be allowed to move around half of nine square hectares of its Marlborough Sounds fish farms to better locations, but is braced for a “disappointing” outcome for both the company’s growth and environmental outcomes.

Speaking to BusinessDesk at the Aquaculture New Zealand conference in Blenheim, NZKS managing director Grant Rosewarne expressed frustration at the likelihood of a “sub-optimal outcome”. . .

Coromandel dairy farmers lead the way through new genetics:

In 1995 Andrew and Maree Palmer saw the value of being part of CRV Ambreed’s progeny testing programme so jumped on board and haven’t looked back.

Andrew and Maree have had a hand in developing many generations of daughter proven sires.

Today, they’re still part of the herd improvement company’s progeny testing programme and reckon they’re doing their bit to strengthen the value of the national dairy herd. . .


Rural round-up

November 13, 2015

Alliance profit takes $4.28m hit – Sally Rae:

Alliance Group’s profit has taken a dive and operating profit was down $4.28million in the year ended September.

The company released its key financial results yesterday, which showed operating profit of $9.19million, down from $13.47million last year.

Turnover lifted slightly, from $1.45billion to $1.49billion, while reported profit was down from $6.21million to $4.62million. . . .

Alliance taps in to online traffic through Chinese partner – Tim Cronshaw:

The Alliance Group’s closer partnership with a big red meat player in China will position it better to take advantage of the quick uptake by Chinese internet users to online buying.

Online sales are huge in China with US$9.3 billion of transactions going through Chinese e-commerce company Alibaba.com on November 11 (11/11) last year . This is known as  Singles’ Day when students graduate and has been popularised in the internet era. Much of the online retail went through Tmall.com, a platform for Chinese and international businesses to sell brand name goods to consumers in mainland China and owned by China’s richest man, business magnate Jack Ma.

Meat processor Alliance’s main sheepmeat buyer into China, Grand Farm, plans to step up online sales which will tie in with the companies’ joint strategy to increase their co-branding in the Chinese marketplace. . . 

Farming in the land of the hobbit – Gerald Piddock:

The Alexander family had never heard of Peter Jackson when in 1998 he first knocked on the front door of their Matamata farm.

The movie maker had spotted their 560ha sheep and beef farm from the air and thought the site could make an ideal set for what was to be The Lord of the Rings movies.

Unfortunately, Jackson chose the wrong time to call in on Ian Alexander, his son Craig told a large crowd of international farming journalists in Waikato for the International Federation of Agricultural Journalists Congress in Hamilton. . . 

Broadband rollout to rural hospitals complete:

Health Minister Jonathan Coleman and Communications Minister Amy Adams have announced that all rural public hospitals and integrated family health centres now have access to high speed broadband.

The 39 hospitals and integrated family health centres identified by DHBs as candidates for the Government’s Rural Broadband Initiative are now all able to connect to fibre capable of peak speeds of at least 100 Mbps.

“Faster broadband enables healthcare to be delivered in new and innovative ways. These e-Health solutions offer better, safer, more efficient healthcare closer to home,” says Dr Coleman. . .

Transtasman Company Named NZ’s Fastest Growing Agribusiness:

Agricultural consultancy and rural investment management company Compass Agribusiness, has secured the title of New Zealand’s fastest growing agribusiness in the latest Deloitte Fast 50 Index.

The company, which has offices in both Arrowtown (New Zealand) and Melbourne (Australia), also placed 18th on the overall index ranking the 50 fastest growing businesses in New Zealand.

New Zealand based company director Guy Blundell says the ranking caps off a big year for the business. . . 

Non seasonal dairy – Keith Woodford:

Recently, I have been writing about what we need to do in New Zealand to climb the agri-food value chain. I have been emphasising the importance of China – there really is no alternative – and the associated need for an integrated ‘NZ Inc’ approach to online selling direct to consumers.

The products we need to be selling through this dedicated and integrated ‘NZ Inc‘ portal (but also linked into the major Chinese online portals) include dairy, meat, wine, fruit, jams, biscuits, chocolate, and bottled water. Indeed almost anything else we manufacture for ourselves that has a shelf life of more than a few days, we can also manufacture for China. . . 

Commission approves Cavalier’s application to acquire NZ Wool Services:

The Commerce Commission has issued its final determination approving Cavalier Wool Holdings’ (Cavalier) application to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

Today’s decision follows on from the Commission’s draft determinations, released in March and October, which indicated it was likely to approve the application because of the public benefits of the acquisition.

Chair Dr Mark Berry said the Commission had considered and tested all the submissions and evidence presented to it since the application was lodged in October 2014 and was satisfied the acquisition should be permitted. . . 

James Wong's photo.

Despite all our accomplishments, we owe our existence to a six-inch layer of topsoil and the fact it rains.


Rural round-up

October 3, 2015

Federated Farmers’ President praises WTO and criticizes those stalling the TPP at Geneva Forum :

The last 20 years of the World Trade Organisation (WTO) have provided an objective framework on which to base our international trade and seen the organisation provide great assistance to small countries like New Zealand.

That was the message from Federated Farmers’ President Dr William Rolleston, Vice President of the World Farmers’ Organisation, in his address overnight to a WTO Public Forum in Geneva.

“New Zealand is a small country, which means our political influence bilaterally can be limited. Without WTO rules, disputes are more likely to be settled on bargaining power rather than the evidence,” said Dr Rolleston. . .

Fossicking in Fonterra’s annual report – Keith Woodford:

The release of Fonterra’s annual report on 24 September coincided for me with a long plane trip back from China. I used the time trying to work out what all the numbers really mean. It was not an easy task.

Fonterra’s annual report – like most reports from large companies –provides masses of numbers. Some are clearly there for public relations purposes. Others are there to meet the required rules of the International Financial Reporting Standards (IFRS). And then there is another set of numbers which Fonterra constructs according to its own rules.

These additional measures are called non-GAAP measures; i.e. ‘non-generally accepted accounting measures’. Fonterra itself acknowledges that these measures are not standard between companies, so comparison must be made with caution. . . 

‘Cloud of dread’ over Filipino workers:

A Filipino worker in the dairy industry says people with false documents are being denied visas and sent home, despite many of them not knowing their paperwork was wrong. 

Immigration New Zealand has confirmed it is investigating multiple work visa applications involving Filipino dairy workers in the South Island, after staff noticed false claims of work experience and qualifications on visa applications.

Roberto Bolanos is a dairy farmer in North Canterbury, who arrived from the Philippines 10 years ago.

Mr Bolanos said the problem started with recruiters in the Philippines who offered people dairy jobs in New Zealand, along with documents, at a cost of, in some cases, $15,000. . . 

Government to consider amending National Bovine TB plan:

An independent Plan Governance Group made up of representatives of funding organisations, OSPRI, and wider stakeholder interests, has reviewed the bovine tuberculosis National Pest Management Plan (TB Plan). Today it gave its final advice on the proposed changes to the TB Plan to the Minister for Primary Industries, Hon Nathan Guy. The changes build on the significant progress made by OSPRI under the current TB Plan.

The Plan Governance Group considered a range of technical and scientific advice, and strongly believes that the eradication of TB from New Zealand is both feasible and economically justifiable. The proposed changes to the TB Plan were consulted on with farmers, local communities, and other stakeholders in June and July this year. Over 400 quality submissions, covering a wide range of issues, were received on the draft Plan proposal, and the Plan Governance Group took them into account as it prepared its final proposal to the Minister. . . 

Rabobank Beef Quarterly Q3 2015: Traded Volumes Are Reaching Quota Limits:

New Zealand and Australia beef exports to the US are set to reach their quota limits in Q4. Meanwhile, global economic conditions—such as the appreciation of the US dollar and the depreciation of the yuan and the real—are having an impact on beef trade, according to the Rabobank Beef Quarterly Q3.

A strong US dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the yuan are curbing beef prices in China, and the devaluation of the real is expected to support Brazilian exports in the coming months. “With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade”, according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. . . 

Commission issues second draft determination on wool scouring assets application:

The Commerce Commission has released a second draft determination maintaining its preliminary view that it should allow Cavalier Wool Holdings (CWH) to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

The Commission released its preliminary view on CWH’s application in March 2015 and has since received further information and submissions from interested parties on various matters. The second draft determination has been released to allow interested parties the opportunity to submit on this new information.

Commission Chair Dr Mark Berry said having considered the new information, the Commission is still of the view that the public benefits of the acquisition would outweigh the loss of competition. . . 

Ballance thriving as it plans next 60 years:

Ballance Agri-Nutrients achieved record sales and returned $76 million to shareholders while keeping margins tight and prices affordable, Chairman David Peacocke told the annual meeting of shareholders in Tauranga on Wednesday.

He said the result for its financial year ended 31 May 2015 capped off a milestone year for the co-operative, which celebrated 60 years since the first shares in legacy company Bay of Plenty Fertiliser were issued. Noting the co-operative “not only survives but also thrives”, he said its core value of collective strength remained unchanged while it evolved to meet the current needs of farming.

“What has changed is that farmers are busier, operating over larger properties and working within increasingly tight environmental demands. So along with a secure supply of the right nutrients, we continually broaden our scope to tailor our products, our technology solutions and our advice for today’s farms, and the farms of the future.” . . .


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