Rural round-up

November 11, 2014

Cheese-making success recognised – Dene Mackenzie:

Whitestone Cheese, of North Otago, was founded in 1987 as a diversification during the 1980s rural downturn and a series of crippling droughts.

Last night, the company won the Westpac-Otago Chamber of Commerce Supreme Business Awards at the 2014 OBiz awards ceremony held in Dunedin.

About 330 people attended the function which is held every two years.

Notes provided to the Otago Daily Times said Whitestone founder Bob Berry’s experience in livestock trading was quickly applied to cheese trading. . .

Alliance pool payment first in 3 years – Sally Rae:

Alliance Group farmer shareholders will receive a pool payment for the first time in three years after a better financial result.

The company has announced an operating profit, before a $7 million pool payment distribution, of $17.6 million for the year to September, up from $8.4 million last year.

Turnover increased from $1.38 billion to $1.46 billion, while after-tax profit increased from $5.6 million to $6.2 million. . .

Merino genetics focus breeds success – Sally Rae:

When Gordon Lucas’ parents bought Nine Mile Station, the local land agent commented that it ”wouldn’t be a bad stepping stone for the lad”.

”Here I am at the end of my career and I’m still on the stepping stone,” Mr Lucas quipped.

He was outlining the story of Nine Mile Pastoral Ltd to those attending the New Zealand Grassland Association conference, which was based in Alexandra last week.

As part of several field trips, including Ida Valley Station and Hills Creek Station, those attending visited Willowbank, near Tarras, an intensive irrigated finishing property run in conjunction with Nine Mile. . .

Mobile Milking System, Bureaucrats & Regulations – Milking on the Moove:

When I decided to actually build the mobile cowshed & process my own milk, I knew that the regulatory requirements would be the hardest part.

New Zealand trades on our food safety reputation. We need to protect that reputation. I’m aware that even small scale producers have the potential to put our whole reputation at risk too.

With this in mind, I delved into all the regulations that a mobile cowshed would have to meet. 

The regulations for the farm dairy side of things are in a document named NZCP1.

People wanting to process milk will also need to know all the requirements of DCP1, DCP2, DCP3 & DCP4.  . .

MP welcomes trail initiative;

Clutha-Southland MP Todd Barclay congratulates the Gibbston community, landowners, and the Queenstown Trails Trust for delivering the $370,000 Gibbston River Trail which will join the Queenstown Trail as a part of the NZ Cycle Trail Great Rides network.

The Gibbston River Trail Upgrade was reopened today (8 November). Mr Barclay was presenting certificates to the landowners who provided easements to make the trail possible. . .

Feed Grain market tightens up:

Grain growers will be heading into the next harvest with silos completely empty, and an emerging potential for shortages. This is according to a recent study published by the Arable Industry Marketing Initiative (AIMI).

David Clark, Federated Farmers Grain and Seed vice-chairperson, says this time two years ago there was a glut of wheat and barley available to end-users.
“That has now been obliterated” he says.

“Twenty-four months ago the market had a big surplus of carry-over stock heading into the end of the year.

“Last year we made a big dent in that surplus, but these latest figures show that it has now disappeared. . .

Building the next generation of Federated Farmers – Casey Huffstutler:

When it comes down to it, people are the key to our primary industry success and even survival. They are our most precious resource.

Our value recognised in the multiple organisations set up to promote and support the industry and its people.  From education, to industry good, to insurance, to lobby organisations; New Zealanders are building a strong agri-community.  NZ Young Farmers and Federated Farmers sit at the core of this; made up of the very farmers this community exists for.

The Waikato and Bay of Plenty regions, of which I have been a NZ Young Farmers Field Officer for nearing on four years, have a great working relationship with Federated Farmers Waikato.  It is important to have cohesion between our young farmers and our farming leaders, to ensure we are supporting the next generation into the spotlight. . .

 Open Day aims to give public a peak at primary sector:

 Connecting city folk with ‘what goes on behind the gate’ is just one of the objectives for the upcoming Farm Open Day to be held at the Lincoln University Dairy Farm (LUDF).

Following on from the success of last year’s inaugural event, the farm will once again open its gates to the public to showcase the operations of a commercial dairy farm and provide perspective on the broader scientific, commercial and logistical aspects of sustainable food production.

The event is organised by the South Island Dairying Development Centre (SIDDC) and Fonterra, and will include nine outdoor educational demonstrations and displays which take people on the journey of ‘turning sunshine into food’. A central marquee will offer information to the public, along with samples of a range of milk-based products, such as cheeses, yoghurt, milk drinks and ice creams. . .

Building NZ’s reputation as a leader in food safety in China:

 New Zealand Government owned AsureQuality and PwC’s New Zealand and China firms are cooperating with COFCO, China’s largest agricultural and food products supplier, to continually improve China’s food safety and quality. All four parties signed a cooperation agreement to that effect on the side-lines of the 2014 Asia Pacific Economic Cooperation Summit in Beijing, China today.

Drawing on leading New Zealand and international food and agricultural models, the agreement formalises areas where AsureQuality and PwC will support COFCO in embedding best practice in food safety and quality across the food and agriculture industries. . .

Results Announced for the 2014 Fonterra Elections:

Returning Officer Warwick Lampp, of electionz.com Ltd, has declared the final results of the 2014 elections for the Fonterra Board of Directors, Directors’ Remuneration Committee and Shareholders’ Council.

Shareholders voted to re-elect incumbent Directors John Monaghan and David MacLeod. They will be joined by new Director Leonie Guiney.

Leonie Guiney lives and farms near Fairlie where she is Director of four dairy farming companies. Leonie has previous experience as a Consulting Officer, Dairy Production Lecturer and has studied overseas co-operatives in the Netherlands and Ireland. Leonie was the 2014 winner of the low-input Dairy Business of the Year. . .

 


Fonterra holds 4th place in global dairy rank

July 16, 2014

Fonterra has held fourth place in Rabobank’s global dairy rankings:

  The latest annual Rabobank survey of the world’s largest dairy companies highlights the giants of one of the world’s most valuable food sectors.

The last 18 months have seen most of these players battle challenging conditions, with weak economies and supply constraints undermining sales growth in key markets. Againt this backdrop, mergers and acquistions have become an attractive route to growth and profitability. But with billion dollar deals increasingly hard to come by, dairy giants will need to acquire or tie up with more companies to sustain the same rates of growth in future. Those adept at acquiring and embracing new businesses will remain well positioned to survive and thrive. 

“Once again, giants Nestlé, Danone and Lactalis top the list, showing that the world’s largest dairy companies are reasonably entrenched,” commented Rabobank analyst Tim Hunt. “We continue to see some companies outperform their peers in sheer growth terms. In particular, the Chinese giants Yili and Mengniu, which saw their sales expand by 14% and 20% respectively, with Yili entering the top 10 for the first time ever”. 

Saputo continued its march up the list to push to eighth place, in part due to several recent acquisitions. Meiji and Morinaga slipped down the list largely due to the sharp decline in the value of the Yen (in which most of their products are sold).  

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2013 was a challenging year for most of the world’s major dairy companies, with stagnant sales volumes in most OECD dairy markets. Acquisitions have become a more attractive route to grow sales and in 2013, there were 124 dairy transactions, up from 111 in 2012 and the highest since 2007.

Positioning for maximum effectiveness in the expanding Chinese market remains prominent. In 2013, joint ventures were announced between Mengniu and Whitewave and COFCO and Danone while Yili announced a partnership agreement with Dairy Farmers of America.

Mengniu took a stake in China Modern Dairy to secure raw milk supply. A further joint venture is pending between FrieslandCampina and Huishan. Despite the increase in transactions, the dairy sector saw no billion dollar deals in the 12 months to 30 June 2014.

While underlying growth will pick up in coming years, many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability.

“The catch is that the number of attractive targets is shrinking and multiples have risen,”  explained Hunt. “With billion dollar value deals harder to come by, dairy giants will need to acquire or tie up with more companies than in the past to sustain the same rates of growth”.

Fonterra made a record pay out to its suppliers last season but that was overshadowed in the media by its poor handling of the whey protein concentrate debacle.

However, it maintained its 4th place in the rankings.


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