Rural round-up

August 2, 2018

Farmers seek off-farm income to counter rising costs – Heather Chalmers:

A farming leader says it is no surprise that farms are increasingly reliant on off-farm income.  

A Lincoln University survey has shown just over a quarter of farms obtained 30 per cent or more of their income from off-farm sources.

Farmers were struggling to keep up with the mainly inflation-caused price squeeze, the survey found. But the authors said some families found the rural lifestyle compensated for tight finances. . .

Dairy farm effluent compliance in Tasman District coming up roses – Cherie Sivignon:

Tasman district deputy mayor Tim King says the result of the 2017-18 dairy farm effluent compliance survey is a “good story all round”.

It revealed 90 of the 96 farms inspected were fully compliant for effluent management. The other six, graded non-compliant, comprised five with minor ponding and one that failed to adhere to setback rules.

In a report on the matter, council compliance and investigation officer Kat Bunting says all six instances of non-compliance were considered a minor breach of the rules that resulted in “no adverse environmental effect”.

Formal written warnings with directions for improvements were sent to those six farms and return visits found full and continued compliance. . .

Rabobank Global Dairy Top 20 – A Shuffling of the deck chairs:

Dairy price recovery in 2017 has positively affected the combined turnover of the top 20 global dairy companies, which, in 2017, was up 7.2% on the year in US dollar terms and 5.1% in euro terms, according to RaboResearch’s latest Global Dairy Top 20 – A Shuffling of the Deck Chairs report.

“For the second consecutive year, there were no new entrants to the Dairy Top 20 list, with the USD 5bn threshold difficult to achieve due to a scarcity of large acquisitions or mergers.” says Peter Paul Coppes, Senior Analyst – Dairy. “However, while the names have remained the same, the order shifted in 2017.” . . 

UK’s Daily Mail urges Theresa May to listen to Kiwi trade expert– Point of Order:

Brits who may be despairing at the lack of progress on Brexit, as Britain’s political class trade blows and the process becomes bogged down in politicking, have been told “there is a small corner of a government department that they can turn to for cheer”.

This is the office of New Zealand’s Crawford Falconer, Chief Trade Negotiation Adviser at the Department of International Trade, described by the Daily Mail as

“… a man of immense experience in such matters. And, in contrast to the doomsayers, his message about Brexit is one of almost unbounded optimism.”

 The article goes on to say: . .

Comvita touted as potential bidder for Manuka Health company – Tina Morrison:

(BusinessDesk) – Comvita, the NZX-listed manuka honey company, declined to comment on whether it is interested in making a bid for honey company Manuka Health New Zealand which has reportedly been put up for sale by its Australian owner Pacific Equity Partners.

The Australian newspaper suggested Comvita or its largest shareholder China Resources Ng Fung as possible buyers of Manuka Health, which was put on the market about six weeks ago for more than A$200 million by PEP and advisers Luminis Partners. Manuka Health was reportedly sold to the Australian private equity firm in 2015 for $110 million. . .

 

Inter-club challenge still going strong:

The last hurrah for the Canterbury dog trial season, the annual Inter-Club Challenge, was held at Waihi Station, home to the Geraldine Collie Club, on July 1.

The day turned from a ”rugged-up” winter’s morning to a balmy northwest afternoon.

The Canterbury Centre is one of the largest centres in New Zealand,comprising 18 club trials stretching from Cheviot in the north to Mackenzie in the east and Levels (Timaru area) in the south, encompassing all areas in between.

In its 25th year of competition, the trial attracted a strong gallery of spectators and team supporters from throughout the province, testament to the strength and popularity of the sport. . .

Strong interest expected with vacant governance roles on Ballance board:

 A “genuine and rare governance opportunity” has opened up with one of New Zealand’s industry-leading rural co-operatives with Ballance Agri-Nutrients announcing that two farmer-elected directors will be stepping down from its Board this year.

Ballance shareholders are currently being notified of the vacancies created by the decisions of Gray Baldwin not to seek re-election, and Donna Smit who is standing down in the North Island Ward (N). Murray Taggart is retiring by rotation (as required under the Co-operative’s Constitution) and seeking re-election in the South Island Ward (S). . .

MyFarm launches $17.6m Hop Garden investment

MyFarm has launched a $17.64 million investment into what will become New Zealand’s largest hop garden.

The opportunity to invest in Tapawera Hop Garden Limited Partnership includes the purchase of a 96-hectare property and the lease of a second 50-hectare property which will be developed into a 116 canopy (effective) hectare garden. Half of the garden will be planted this spring alongside other development such as building hop picking and drying facilities and worker accommodation. . . 


Rural round-up

March 16, 2016

Whitestone blue wins silver in world champs – Sally Rae,

Whitestone Cheese has got the blues – but in a good way.

The Oamaru-based company has been awarded a silver medal in the blue vein division of the 2016 World Championship Cheese Contest in the United States, the world’s largest cheese, butter and yoghurt competition.

The contest, hosted by the Wisconsin Cheese Makers Association, attracted a record 2948 entries from 25 countries. Judges came from all over the world and included Fonterra research technologist Andrew Legg. . . 

Bankers aren’t farmers – Offsetting Behaviour:

On Radio New Zealand this morning, Andrew Little argued the government should lean on the banks to prevent their foreclosing on dairy farms, warning of that foreigners might swoop in and buy distressed NZ farms. 

  • Banks do not want to run farms. If they foreclose, they have to find somebody to run the thing pending auction. There are cows that need to be fed. The bank or the receiver takes on all the health & safety, and animal welfare, liability. The most heavily leveraged ones are the ones that’d be first to go; those are the ones where the banks have the biggest stake, and where the banks would take the greatest share of the loss in a fire-sale. A receiver’s fees will include all the farm-running costs. . . 

Dairy industry needs to stay competitive – DairyNZ:

DairyNZ says it is time to look at how the dairy industry can stay competitive in the wake of a record low Farmgate Milk Price and mounting debt.

It is stepping up its support to farmers and is running workshops across the country this week focussing on sharemilkers and farm owners working with sharemilkers.

Chief executive Tim Mackle said Fonterra has done well since it formed in 2001, and the main challenge for farmers – compared to other tough years – was the mountain of debt that had grown.

“Ten percent of the highest indebted farms have 30 percent of the total dairy debt – that’s $11 to $12 billion or $10 million each. But that doesn’t mean all those farms are at risk,” says Dr Mackle. . . 

Dairy prices affecting over one fifth of NZ SMEs:

More than one-in-five small and medium enterprises across New Zealand are feeling the effects of falling dairy prices, according to leading accounting software developer MYOB.

A snapshot result from the latest Business Monitor research commissioned by MYOB and undertaken by Colmar Brunton, found that 21 per cent of the more than 1,000 SMEs surveyed stated their business’ revenues were negatively affected by the dairy price. Even more concerning is the 25 per cent of SMEs that said general consumer confidence has been directly hit.

Across the country, it means that approximately 100,000 businesses employing upwards of one million New Zealanders are facing reducing revenue because of the dairy downturn. MYOB General Manager James Scollay says that the results show a significant impact on the New Zealand economy. . .

Dairy farming: it’ll be survival of the fittest – Jamie Gray:

Bank analyst has confidence in the sector’s ability to adapt but says that some of those ill-prepared for the downturn will go to the wall, writes Jamie Gray.

The dairy sector may be in for a period of adjustment of an order not seen since the 1980s, when farmers were hit with high interest rates, a high New Zealand dollar, and the removal of subsidies, says Rabobank NZ’s head of country banking Hayley Moynihan.

As dairy farmers prepare to enter what may be their third season in a row of negative returns, Moynihan said there will be casualties, but she has confidence in the sector’s ability to cope. . . 

dairy graphic

Stellar vintage predicted for Hawke’s Bay winegrowers:

All signs are pointing towards 2016 being another stellar year for Hawke’s Bay winemakers.

Paul Ham, Managing Director of Alpha Domus Winery, says the 2016 vintage is shaping up to be one of the best yet.

As one of the first wineries in Hawke’s Bay to harvest their early Chardonnay grapes, Alpha Domus is in a unique position to assess the coming vintage. “We’re really excited about the remainder of the harvest,” says Mr Ham. “It’s been a superb season and the grapes are looking outstanding on the vine.” . . .

Quality of NZ wool clip leaves exporters scrambling to fill lower-grade fibre orders – Tina Morrison:

(BusinessDesk) – New Zealand wool exporters scrambling to fill orders for lower-grade wool have driven up the price of what are known as oddments in recent weeks because the season to date has delivered an unexpectedly high-quality clip.

Wool oddments are the shorter parts of the fleece, such as from the belly, second pieces, eye clips, necks and those parts stained or otherwise discoloured. They are often baled and sold separately, but a paucity of lower-quality wool has meant exporters are blending oddments with other higher wool grades to make up orders, said Malcolm Ching, an executive at New Zealand Wool Services International in Christchurch. . . 

China Resources buys stake in NZ’s biggest apple exporter – Jonathan Underhill:

(BusinessDesk) – China Resources Ng Fung has acquired 15.3 percent of Scales Corp, New Zealand’s biggest apple exporter, for about $55.9 million from Direct Capital Investments.

The Hong Kong-based company today entered into an arrangement to buy the shares at $2.60 apiece, with settlement on about March 21. Scales said it welcomed China Resources “as a significant minority shareholder, and as a party who can provide support to Scales in its ongoing initiatives in China.” . . 

Social Media Stars Win Auckland/Hauraki Dairy Awards:

The 2016 Auckland/Hauraki Dairy Industry Awards winners are active among a growing group of dairy farmers turning to social media to support, share and gain information to help progress their dairy career.

At the region’s annual awards dinner held at the Indian Hall in Pukekohe last night, Brad Markham and Matthew Herbert were named 2016 Auckland/Hauraki Share Farmers of the Year, Hayden Kerr became the 2016 Auckland/Hauraki Dairy Manager of the Year and James Doidge the 2016 Auckland/Hauraki Dairy Trainee of the Year.

Mr Markham, Mr Herbert and Mr Kerr are all active and well-known among dairy farmers on Twitter. “We enjoy connecting with other farmers, in New Zealand and overseas, on social media platforms like Twitter,” Mr Markham and Mr Herbert say. “It can be a great way to share ideas. . . 

Accountants Get in Behind New Zealand Dairy Farmers:

NZ CA Limited announces Gold Sponsorship of 2016 Dairy Business of the Year

Improving farm profitability and developing resilient and sustainable farming systems are two of the key drivers behind NZ Chartered Accountants Limited’s (NZ CA) gold sponsorship of this year’s Dairy Business of the Year (DBOY).

Sue Merriman, NZ CA’s chairperson and also partner in Greymouth chartered accountants Marshall & Heaphy Limited, says, “The group is delighted to be a Gold Sponsor of the 2016 Dairy Business of the Year. With so many of our member firms located in provincial New Zealand and having dairy farm businesses as clients, it’s a logical move for the group to be involved in supporting and further developing these businesses. With the continuing slump in milk solid prices this year and the effect of this on farm businesses, it’s more important than ever that dairy farmers get good independent business advice from their chartered accountants. . . 

Fertiliser Company Takes Industry Lead to Identify Fertiliser Efficiency:

Fertiliser Company Hatuma Dicalcic Phosphate has taken an industry lead to identify fertiliser efficiencies for farmers

The company has invested over $1 million in research and is monitoring 12 sheep and beef farms totalling 16,500 hectares in the independent ‘Farming for the Future’ programme.

The programme set out to find how a lower nutrient input system can build both economic and environmental resilience within the farm gate. . . 

TECH Talks a highlight at national primary industry conference:

In two weeks Rotorua will be playing host to over 300 industry representatives from throughout the agriculture, horticulture and forestry sectors. MobileTECH 2016 is a two-day conference focusing on new technologies and innovations designed for our food and fibre industries.

As well as the New Zealand sector, MobileTECH has also attracted a solid contingent from across the Tasman. Some of Australia’s largest primary industry companies will be flying into Rotorua and joining the local industry for this event.

The strength of this programme, boosting over 36 speakers, is in bringing together under the one roof leaders from across a diverse range of primary industries with those who are developing, manufacturing and adopting these new technologies. . . 

 


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