Rural round-up

15/08/2016

Unreliable rain reduces sheep numbers – Kate Taylor:

The seasons are changing at Patoka Station and less reliable rainfall is affecting the way it’s farmed. Kate Taylor reports.

It looks green but the grass is much shorter than normal for late winter on Patoka Station in Hawke’s Bay.

That picture is about to change, though owners Ben and Suzie Crosse are unaware of it as they discuss their upcoming lambing, starting from August 31. A storm is approaching the central North Island and will dump 190mm of freezing-cold rain on the 1200ha farm.

The farm has monthly records going back to 1948 but the rainfall hasn’t been reliable lately, Ben says. . . 

Biggest year’ ever for avocado growers

With avocados back on the menu, New Zealand growers are gearing up for their best season ever.

That’s according to John Carroll, director of the country’s largest exporter Avoco, who says his firm expects to ship off about 3.2 million trays of the fruit in the coming months.

In total, 5.1 million trays, about 28,000 tonnes, are predicted to depart our shores, mainly bound for Australia and Asia. . . 

Forest industry’s challenge to manage supply fluctuations:

The pan forest and timber processing industry organisation, the New Zealand Wood Council (Woodco) says there is a supply challenge for many regions in the domestic processing industry.

Woodco Chair, Brian Stanley says timber processors are being hindered by a current lack of logs, especially in the higher grades.

He says small scale woodlot owners are being enticed into quick export contracts instead, where the buyers are not providing the domestic processors with an opportunity to purchase these logs. . . 

Deputy PM Bill English visits Blue River dairy factory – Dave Nicoll:

It was a bit surreal for Deputy Prime Minister Bill English to see award winning cheeses named after places his mother grew up.

English made a special visit to the Blue River Dairy factory in Invercargill on Friday as part of a trip to the Southland region.

Blue River Dairy produced a number of award winning cheeses, and milk powder from sheep milk and has expanded into exporting sheep milk baby formula into China. . . 

Fonterra Announces New Palm Products Sourcing Standard:

Fonterra has adopted a new standard for sourcing of palm products as part of its commitment to sustainability.

The standard was developed in consultation with key supply partners, and it follows discussions with Greenpeace that began in December 2015 to strengthen Fonterra’s existing sustainable palm products sourcing procedures.

“The new standard requires us to purchase only segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure that plans are in place for full traceability to plantation by 2018,” said Fonterra’s Director of Social Responsibility, Carolyn Mortland. . . 

Action to help farming productivity in Manawatu-Whanganui:

Primary Industries Minister Nathan Guy says $465,000 towards primary sector initiatives in the ‘Accelerate 25 Manawatū-Whanganui Economic Action Plan’ launched today will make a real difference to the region.

“Manawatū-Whanganui has the largest sheep flock and beef herds of any region in the country, and half of New Zealand’s lamb exports come from within two hours’ drive of Feilding. We need farming to do well to drive economic prosperity here,” says Mr Guy.

Speaking at Ross and Wendy Humphrey’s farm in Cheltenham, Mr Guy says much of the funding will be used for information sharing to lift productivity.   . . 

Report shows good results from flood recovery money:

A report on Government assistance to farmers following the June 2015 Taranaki-Horizons storm shows that good results were achieved, says Primary Industries Minister Nathan Guy.

“These storms had a major impact on the region and caused widespread damage, so it’s pleasing to see that Government funding has made a real difference,” says Mr Guy.

“The storm on 18-20 June 2015 brought widespread heavy rainfall, flooding and erosion to the Taranaki and Horizons regions. Hill sheep and beef farmers were particularly affected by flooding of river margins and damage to tracks and fences, with damage also to dairy land and young forest plantations.” . . 

Wools of New Zealand well set for end of grower-funding

Wools of New Zealand (WNZ) Chairman Mark Shadbolt says the company is making strong commercial progress with an expected maiden profit for the 2016 financial year.

Shadbolt was responding to a recent shareholder comment in a local rural newspaper that the company would “almost certainly fail” without income from farmers’ Wool Market Development Commitment (WMDC).

“To the contrary, WNZ is making investments that are reducing the company’s reliance on the WMDC.” . .

Commission releases draft report on Fonterra’s 2015/16 base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2015/16 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and it is currently set by Fonterra at $3.90 per kilogram of milk solids for the 2015/16 season just ended. The report does not cover the forecast 2016/17 price of $4.25 that Fonterra recently announced.

The Commission is required to review Fonterra’s calculation each year at the end of the dairy season under the milk price monitoring regime in the Dairy Industry Restructuring Act (DIRA).

Deputy Chair Sue Begg said Fonterra’s calculation of the 2015/16 base milk price is consistent with both the efficiency and contestability purposes of DIRA. . . 


Rural round-up

13/11/2015

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.


Competition not sufficient to warrant deregulation

06/11/2015

The Commerce Commission has found there’s not yet enough competition to deregulate the dairy processing industry.

The Commission began its review in June this year at the request of the Minister for Primary Industries as required under the Dairy Industry Restructuring Act 2001 (DIRA).

Deputy Chair Sue Begg said the Commission’s draft finding is that, on balance, there is not sufficient competition at the farm gate and factory gate to consider full deregulation at this time.

“Our primary concern is that competition in the factory gate is very limited. Without the existing regulations, Fonterra would be able to increase the price of raw milk it sells to other domestic processors. This could in turn result in higher retail prices for dairy products in New Zealand,” Ms Begg said.

“While there are signs of competition and growth in the farm gate market, particularly in Canterbury, Southland and Waikato, Fonterra faces little competition as the dominant buyer of raw milk in most regional markets. However, it does not have the ability or incentive to reduce prices to farmers in this market due its co-operative nature and constraints from competitors.”

The Commission also concluded that Fonterra has limited ability and incentive overall to shut competitors out of dairy markets if the regulations were removed.

The Commission’s draft report has outlined options for transitioning to deregulation in the future and resetting the current market share thresholds that prompt a competition review. The recommendations include:
Taking a staged approach to amending the DIRA regulatory regime, beginning with a review of the Raw Milk Regulations with an eye to allowing a factory gate market to develop
Resetting the market share thresholds in both the North and South islands to 30 percent (up from the current 20 percent) as the trigger for a competition review of the dairy industry.
“Our analysis suggests that gradual relaxation of the Raw Milk Regulations may encourage the factory gate market to develop. Full deregulation currently poses a potential risk to domestic competition in goods such as fresh milk and cheese, where independent processors are dependent on regulated access to raw milk from Fonterra. Taking a staged approach to deregulation would mitigate this risk,” Ms Begg said.

“We recognise that any changes to the regime would need to be carefully managed and welcome submissions from interested parties. In particular we want to test the evidence on the likely costs and benefits of deregulation and whether our recommended approach of developing a more competitive factory gate market is appropriate at this time.”

Submissions on it are open until December 4th.

Primary Industries Minister Nathan Guy and Commerce and Consumer Affairs Minister Paul Goldsmith have welcomed the Commerce Commission’s release of a draft report on the state of competition in New Zealand’s dairy industry today.

The report was commissioned by the two Ministers on 2 June 2015 as required under the Dairy Industry Restructuring Act 2001. That Act allowed the formation of Fonterra, and includes provisions to promote contestability in New Zealand’s farm gate and factory gate dairy markets to ensure their efficient operation.

“The Commerce Commission has formed an independent view based on its expertise as New Zealand’s primary competition regulatory agency. On balance, the draft report has found that competition is not sufficient to warrant deregulation at this point,” says Mr Guy.

Submissions on this draft report are open until 4 December 2015. Following a period for cross-submissions, the final report will be released by 1 March 2016.

“I intend to consult on a package of policy proposals in mid-2016, following receipt of the Commerce Commission’s final report.

“The dairy industry is a major part of our economy and this process will be helpful in assessing whether the Act is effectively promoting contestability, and in turn, the efficient operation of our domestic raw milk markets.”

“I would like to thank the Commerce Commission for their work to date, and I encourage all those with an interest in this area to consider the Commissions draft report carefully, and to make a submission if necessary,” Mr Goldsmith says.

The final report will help inform the Government’s policy decisions, in particular, whether or not to allow the default expiry of the pro-competition provisions of the Act in the South Island (the current expiry threshold was met in the South Island in the 2014/15 season).

The draft report is here.

Now that the expiry threshold has been met in the South island I hope that the Minister will allow the default expiry of the pro-competition provisions.


Rural round-up

08/10/2015

Key sectors welcome TPP – Colin Bettles:

SUGAR may have been served a bitter-sweet outcome in the final Trans-Pacific Partnership but other key Australian commodities like beef, grains, dairy and cotton have tasted some success.

The Cattle Council of Australia (CCA) said the TPP deal – signed overnight by Federal Trade Minister Andrew Robb – would provide significant increased market opportunities for Australian grassfed beef producers, when it comes into force.

Game changer for beef

CCA president Howard Smith said the agreement signifies a game changing opportunity for the Australian beef industry which sees a positive future fort itself, in export markets. . . 

Rolleston wants GM use debate – Richard Rennie:

Councils’ efforts to ban genetically modified crops have Federated Farmers banging up against public opinion in some rural districts.

But federation president Dr William Rolleston argues the move to ban GM crops threatens farmers’ ability to innovate and is a choice they might lose through misinformation and misunderstandings about what the science is really about.

The federation’s case against council bans on GM use got a severe bruising when they lost on appeal to the Environment Court earlier this year. . . 

Milk price expected to hit $3000/t this year – Jemma Brackebush:

Banks and analysts are predicting international dairy prices will continue to rise, and a lift in Fonterra’s forecast payout looks likely.

Prices in the global dairy trade auction rose for the fourth consecutive time on Tuesday night.

The price for the key commodity, whole milk powder, which underpins the price Fonterra pays its farmers, increased by 12.9 percent to $US2,824 a tonne. . . 

Record jail sentence for animal abuser Michael Whitelock:

A dairy worker has been handed what is believed to be New Zealand’s longest-ever prison sentence for animal cruelty, after cows were beaten, had their tails broken and were shot in the kneecaps on a farm he managed.

Michael James Whitelock was sentenced in the Greymouth District Court on Wednesday to four and a half years jail and banned from owning animals for 10 years.

He had earlier pleaded guilty to 12 charges, including ill treatment of animals, unlawful possession of firearms and attempting to pervert the course of justice. . . 

Farmer suicides up – Jemma Brackebush:

Figures from the Ministry of Justice show 27 men in farming communities committed suicide in the past year ended June.

The chief coroner Deborah Marshall released annual provisional suicide statistics on Tuesday, which showed 564 people died by suicide in the past year, up 35 on the previous year and the highest number since records began eight years ago.

Male suicides rose from 385 last year to 428, and female suicides dropped from 144 to 136. . . 

Banks fork out a total $25.5M over rural interest rate swaps – Fiona Rotherham:

(BusinessDesk) – The Commerce Commission has completed the distribution of $25.5 million to complainants and rural charities after reaching settlements with banks who had marketed interest rate swap products to farmers.

The commission says nearly $20 million in cash has been paid to eligible customers while $1.9 million was offset by the banks against debts some complainants owed to them. A further $2.5 million went to 14 regional Rural Support Trusts and the Dairy Women’s Network and the commission received $1 million to cover a portion of its investigation costs, including legal expenses. The bulk of the money came from the ANZ Bank New Zealand, which paid out $19.3 million in total, $3.2 million from ASB Bank and $3 million from Westpac Banking Corp. . . .

All Geared Up For The Glammies:

Entries are now open for the 2016 Golden Lamb Awards, aka the Glammies, which seeks out the tastiest and tender lamb in New Zealand.

The competition gives farmers the opportunity to enter their lamb into one of the most highly regarded competitions the industry has to offer.

The entries are then assessed by Carne Technologies in Cambridge for tenderness, yield, succulence and colour.

The scientific testing determines which top four entries from five categories will make it through to the final stage of the competition, a taste test, held at the Upper Clutha A&P show in Wanaka on 11 March 2016. . . 

New Zealand Bloodstock to Sponsor New Race in China:

New Zealand Bloodstock and the Inner Mongolia Rider Horse Industry Co. Ltd have partnered together to introduce the New Zealand Bloodstock Cup to be held in Inner Mongolia, China next year.

2015 RTR
The race is open to horses purchased by any Chinese buyer at this year’s New Zealand Bloodstock Ready to Run Sale in November. To be held in July 2016 at Korchin, Inner Mongolia, the New Zealand Bloodstock Cup is worth RMB500,000 and will be run over 1800m.

NZB’s Co-Managing Director Andrew Seabrook is excited about the formal partnership reached between NZB and Rider Horse Group. . . 

Serious savings from whole-farm soil testing:

Whole-farm soil testing saves Taranaki farmer Hayden Lawrence about $15,000 on fertiliser each year.

Hayden, who farms in equity partnership with his wife Alecia and parents in Taranaki, began whole-farm soil testing seven years ago. To date, he has reaped about $90,000 in savings and has increased pasture production from 14.5 tonnes per hectare to 18.6T/ha on the 97ha property.

The Lawrences milk a maximum of 240 cows on an 85ha milking platform, using their hill country block to graze heifers. They also follow an 18-month cropping rotation, that sees paddocks planted into silage, oats, chicory and then into pasture. . . .

RHĀNZ welcomes Government’s new rural connectivity target:

The Rural Health Alliance Aotearoa New Zealand welcomes the new rural connectivity target announced by the Government today.

The target means nearly all rural New Zealanders will be able to access broadband speeds of at least 50Mbps by 2025.

RHĀNZ Chairperson, Dr Jo Scott-Jones, says securing reliable and affordable telecommunications services is critical to the health and wellbeing of rural communities and is a top priority for all 40 RHĀNZ members.

“As part of our RBI phase 2 submission to Government earlier this year, we called for more ambitious targets for rural broadband speeds, so it is really pleasing to hear Minister Adams’s announcement today,” he says. . . 

Anglers urged to vote ‘in best interests of our fishing and hunting resources’:

The country’s anglers and game bird hunters are being reminded to make sure they vote in the Fish and Game Council elections.

Fish & Game Communications Manager Don Rood says that because voting closes at 5pm on Friday (9 October), those who are eligible and haven’t voted are advised to do so online, rather put voting papers in the post.

“We urge licenceholders to take the time to vote – to exercise their right to choose the people who can best advance their local region’s hunting and fishing interests. . . 

Free entry for 2016 Games:

The second annual Hilux New Zealand Rural Games takes place in Queenstown next Waitangi weekend (Sat 6th – Sun 7th Feb) and entry won’t cost you a cent.

Two days of ‘sports that built the nation’ and live entertainment on the Recreation Ground plus the Running of the Wools – more than 400 merino sheep herding through downtown Queenstown – will be completely free to watch.

We’ve been able to waive ticket prices thanks to the generous support of our patrons and event partners including major sponsors Toyota, Fonterra, Line 7, Ngai Tahu Farming, Jetstar and Husqvarna which has increased its support from the inaugural Games.

The Running of the Wools is once again supported by our friends at clothing and gift retailer, Global Culture. . . 


Rural round-up

03/10/2015

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.” . . .


Rural round-up

15/09/2015

Silver Fern Farms Board Unanimously Recommends Partnership with Shanghai Maling:

Board gives unanimous recommendation to accept Shanghai Maling Aquarius Group (Shanghai Maling) as new partner to secure an improved and sustainable future

• A 50:50 partnership with total commitment to our global plate to pasture strategy

• Transaction values Silver Fern Farms’ equity at $311m. This equates to $2.84 per ordinary share, which compares to the $0.35 share price prior to their suspension in July

• Shanghai Maling to invest $261m in cash to own 50% of Silver Fern Farms’ business, in partnership with the existing Silver Fern Farms Co-operative

• A special dividend of $0.30 per share to Co-operative ordinary and rebate shareholders . . .

Cooperatives and private companies work best in agriculture – Allan Barber:

Good company performance demands clarity of purpose which is defined and monitored by a board of directors elected or appointed by the shareholders. There are five main types of company ownership structure that are or have been represented in New Zealand’s agricultural sector and each has advantages and disadvantages.

The five are private and public companies, cooperatives, subsidiaries of an overseas company and State Owned Enterprises. Whatever the structure, good governance and direction are pre-requisites of success.

A privately owned company normally has the greatest clarity of purpose because of the simplicity of the ownership structure, although there is plenty of scope for disputes between individual shareholders, particularly family members. Private company structures range from very simple to more complicated, depending on relative size of shareholdings and the number and origin of the shareholders. . . 

Rural productivity is improving in some sectors, falling in others. Influenced by soil, technology, size and governance according to Motu research:

The agricultural sector produces 40% of New Zealand’s merchandise exports. Not only is agriculture the primary source of employment in many rural areas, its performance influences the success of urban regions and many secondary industries are dependent upon it.

In this study, we estimate the drivers of revenue and productivity in two key agricultural industries – dairy and sheep/ beef. Together these account for about two-thirds of New Zealand’s agricultural exports.

Productivity is an economic term that, in this case, explains changes or differences in output not explained by use of labour, capital, other expenditures or land. Output is measured as revenue excluding income from interest and dividends. Labour is employees and working proprietors. Capital includes stock, depreciation and rent on tractors, irrigation systems and fencing. Other expenditure includes use of fertiliser, diesel, electricity, wormicide and grass seeds; and land is all the land used for production. Productivity encompasses everything else, including management and worker skills and knowledge, technological improvements, unexpected economic shocks (such as the global financial crisis), changing weather conditions (e.g. droughts), and the inherent quality of each farm. . . 

Strong farmer support for sheepmeat and beef levies to continue:

Farmers have given their organisation Beef + Lamb New Zealand a strong mandate to work on their behalf for the next six year sheepmeat and beef levy cycle with over 84% support.

The Declaration of Result provided by the independent Returning Officer, Warwick Lampp, of Electionz.com said 84.56 per cent of farmers on a one farmer, one vote basis had voted in favour of the sheepmeat levy with support of 86.04 per cent on a weighted stock unit basis. There was over 84.66 percent support for the beef levy on a one farmer, one vote and 84.60 per cent on a weighted stock unit basis. . . 

Roles review part of a bigger cost savings project Westland says:

Westland Milk Products confirmed today that it is conducting a review of staff roles throughout the company. The review is part of an overall programme to gain efficiencies and reduce costs to help preserve the best possible return to shareholders during the current global dairy price downturn.

Chief Executive Rod Quin says the review is likely to result in some redundancies. However, he was not going to speculate on how many, or what positions might be affected, until the review is complete, affected staff are consulted, and given an opportunity to provide feedback on any proposed roles under review. The review is scheduled to occur over two rounds, with the first round this month (September 2015) and the second in February 2016. . . 

UN issues stark warning on Pacific drought threat:

The UN’s Resident Coordinator, Osnat Lubrani, says communities and governments need to prepare now for the extreme weather changes El Niño usually triggers.

He says some countries are already implementing or drafting drought plans and the UN is ready to help co-ordinate this and to provide technical advice.

Over the coming months, countries on the equator can expect more rain, flooding and higher sea levels, presenting challenges for low-lying atolls already feeling the impacts of climate change. . . 

Getting the better of El Nino before it gets dry:

Tap rooted, reliable and highly productive, one forage herb species could make all the difference to farmers’ summer feed supply as El Nino looms large this season.

Summer crops are being sown early before soils dry out and chicory is already proving to be a popular drought-proofing choice, according to local pasture specialist Paul Sharp.

“With the long range forecast the way it is, 501 Chicory makes a lot of sense. In a dry year, it’s more reliable than leafy turnips and it also has several other advantages.”

Current soil moisture levels are significantly below average in Hawke’s Bay and Sharp, who works for Agriseeds, says many farmers are being very proactive about setting their feed supply up for the months ahead. . . 

Commission releases final report on 2014/15 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its final report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and is currently set by Fonterra at $4.40 per kilogram of milk solids for the 2014/15 season.

Having considered public submissions on the draft decision released last month, the Commission’s overall view that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the Dairy Industry Restructuring Act 2001 remains unchanged.

Deputy Chair Sue Begg said the Commission appreciated the engagement and effort from Fonterra and the parties they met with during this year’s review. . . 

Funding round starts for new forest planting:

The first funding round of the Afforestation Grant Scheme will see 5819 hectares planted throughout New Zealand, says Associate Primary Industries Minister Jo Goodhew.

The Afforestation Grant Scheme is a $22.5m programme to help establish about 15,000 hectares of new forest plantations over the next six years.

“Under the first round of funding the total area applied for covered 9044 hectares, far exceeding our expectations,” says Mrs Goodhew. . . 

Farm skills day proves popular – James Kinsman:

On Sunday, August 23, the Waitaki Boys’ Fraser Farm hosted Opihi College, Waitaki Girls’, St. Kevin’s and Geraldine High to our first farm skills day.

School pupils did a lot of prior planning to make the day a success. It was a big learning curve for us and the school. The day started with a dog trialling demonstration by Barry Hobbs, assisted by Allan Thompson.

The visitors watched with interest as his well trained dogs got the sheep into the pen. Next it was off to be put into random groups for modules. Barrie Rae, an enthusiastic Poll Dorset breeder taught them stock judging, helped by Jack Price. . . 


Rural round-up

25/08/2015

Five Otago entries for farmer of year award – Sally Rae:

Five Otago farming businesses are among those entered for the 2015 Lincoln University Foundation South Island Farmer of the Year award.

Twelve entries have been received from throughout the South Island, including a West Coast farm for the first time in the history of the competition.

Operations range from sheep and beef farms to a marine mussel farm, saffron grower and fruit producer. . . 

Pipes full, water coming soon – Alan Williams:

The pipes are full and ready to start irrigating stage one of the Central Plains Water (CPW) scheme in Canterbury.

Once the control system was fully tested over the next few weeks the valves could be turned on, chief executive Derek Crombie said.

The official target date was September 1 but the practical timing for water to flow to most of the 120 farms involved would be late September or early October, depending on rainfall levels and ground temperatures. . . 

Science close to unlocking velvet’s secret:

New Zealand and South Korean scientists may soon be able to identify the compounds that give deer antler velvet its immune-boosting properties.

If successful, it would allow velvet extracts to be sold with a precise measure of the active ingredients they contain. Deer Industry New Zealand (DINZ) says this will be an important step in getting such products registered for sale as healthy functional foods. . . 

Conservation planting crowdfunded:

Crowdfunding might be better known for assisting fledgling businesses but it is also helping restore New Zealand waterways.

The Million Metres Streams Project, set up by the Sustainable Business Network in collaboration with Enspiral, is New Zealand’s first conservation crowdfunding initiative.  

Launched in October last year, the project gave people the opportunity to contribute to the restoration of waterways. It has already funded almost 5km of riparian restoration work. . . 

Deadly rattle detected in Cuban maracas:

Biosecurity staff detected a deadly rattle in a set of souvenir maracas carried by two air passengers arriving in New Zealand from Cuba.

The couple declared the Cuban percussion instruments to Ministry for Primary Industries biosecurity staff at Auckland airport earlier this month.

X-ray screening revealed the maracas used red seeds for their rattle. MPI later identified the seed asAbrus precatorius, commonly known as crab’s eye and rosary pea.

The seeds contain abrin, which is more toxic than ricin – a deadly poison associated with spies and biological weaponry. . . 

Feed field days address fluctuations:

Tips and information to help manage the ups and downs of fluctuating milk price will be provided at a series of DairyNZ events in September and October.

The Feed Tactics field days will focus on helping farmers get the best returns from all feeds used on farm.

The nationwide events follow on from one-on-one feed review visits which provided more than 750 farms with an assessment of feed allocation and grazing management in early spring. . . 

Commission reconvenes conference on wool scouring authorisation:

The Commerce Commission is to reconvene its conference on Cavalier Wool Holding Limited’s application for authorisation to acquire New Zealand Wool Services International’s wool scouring business.

The conference will be held on Tuesday 1 September to consider specific issues relating to property valuations, which form part of Cavalier’s application. . . 

GMO ‘Right to Know’ movement takes food off of plates of hungry in Africa, Asia – Michael Dzakovich:

One of the most contentious and polarizing issues today is the use of biotechnology in farming. While many farmers in industrialized countries have been safely and successfully using genetically engineered crops for almost two decades, adoption in the developing world has been significantly slower, only recently eclipsing the U.S. in terms of total acreage.

Many of these crops have been developed to produce naturally occurring nutritional compounds, resist aggressive diseases and tolerate extreme environmental conditions. The benefits of GE crops are not equitably spread throughout the developing world, as those in most critical need often cannot benefit from existing solutions created by public scientists. . . 

Dayton community harvests late farmer’s final crop – Taylor Viydo:

A community came together this week to help a family harvest the final crop of a local farmer who passed away from cancer.

Jim Hanger was still running a 5,000-acre family farm in Dayton when he passed away last week. He lost his battle to cancer at age 66.

“He was always on the tractor, the combines — if it was seeding, he was seeding. If it was harvest, he was harvesting,” said daughter Tracy Hanger. . .

Racheal Trail's photo.


Rural round-up

19/08/2015

Dairy price correction a confidence boost – BusinessNZ:

The uptick in dairy prices at the latest auction should put some confidence back into the economy that should never have been lacking anyway, says BusinessNZ chief executive Phil O’Reilly.

Prices at the latest GlobalDairyTrade rose an average of 14.8 percent, with the all-important whole milk category rising by more than 19 percent, ending a five-month run of 10 consecutive falls.

“It’s been a long time coming, but I guess we’ve got to remain cautious,” says Federated Farmers spokesman Andrew Hoggard. . . 

Auction result welcome but industry needs to remain vigilant:

Federated Farmers has welcomed the outcome of this morning’s GlobalDairyTrade auction, but says those in the dairy industry need to remain vigilant.

Dairy Industry Chair Andrew Hoggard says “The outcome of this morning’s auction suggests there might be light at the end of the tunnel, but what the industry needs is for this to continue and hold.” . . .

Fonterra calls for a halt to having to accept all milk and supply other large entrants –  Fiona Rotherham:

(BusinessDesk) – Fonterra Cooperative Group, the world’s largest dairy exporter, said it should no longer be required to accept all milk from new suppliers or to have to make milk available to large processors, apart from Goodman Fielder.

In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors have said they either want the status quo or the regulations tightened.

Fonterra said it recognises part of the Dairy Industry Restructuring Act (DIRA) continues to benefit the dairy industry and New Zealand but some parts are no longer “necessary or efficient” given significant industry changes since 2001, particularly the continuing entry of well-resourced competitors. . . 

Fonterra’s submission is here.

Auditor General to examine Saudi farm deal:

The controversial deal that saw $11.5 million of taxpayer money on a Saudi farm is to be examined by the Auditor-General.

Lyn Provost has announced she will carry out an inquiry into the expenditure of public money on the Saudi Arabia Food Security Partnership.

Mrs Provost received several requests, including from members of Parliament, the New Zealand Taxpayers’ Union, and in a petition from over 10,000 New Zealanders, to inquire into aspects of the deal. . . 

 

Dairy prices set for ‘substantial recovery’ by mid-2016, Rabobank says – Tina Morrison:

(BusinessDesk) – Dairy prices, which have slumped to a six-year low, are set for a substantial recovery by mid-2016, according to agri banking specialist Rabobank.

Average dairy product prices plunged to the lowest level since August 2009 at the last GlobalDairyTrade auction a fortnight ago, amid increased supply and weak demand. Still, the factors to trigger a turnaround are now in place and a substantial improvement in prices is expected by mid-2016, Rabobank said in its dairy industry note ‘Riding Out the Storm’.

Rabobank says dairy prices are set to rise as milk price reductions in China start to choke off domestic production growth, lower New Zealand production leads to a supply-side adjustment in export regions, the collapse in international commodity prices reduces supply growth from the US and EU, and as accelerated dairy consumption growth depletes current accumulated stocks. . . 

The short, the medium and the long term for dairy – Keith Woodford:

With calving in full swing, most dairy farmers have no time to think about anything but today. Things are indeed grim and the short term focus has to be on survival. For the next few weeks, there is some logic to focusing on the simple day to day things that can be influenced. Even in the good times, these are the things that often separate out the best from the not so good.

Despite the gloom, most of the farmers I know do seem to have things well under control. Perhaps that is because most of my mates have lived through tough times before, back in the 80s and 90s. They have always assumed that at some time a storm would burst upon them and so they have not panicked. Rather, they have been quietly and sequentially battening down the hatches for more than 12 months. . . 

Meat industry shareholder groups merge to push their case for reform – Fiona Rotherham:

(BusinessDesk) – The two shareholder groups representing Silver Fern Farms and Alliance farmers have joined forces in a bid to encourage the two meat cooperatives to follow suit and work collaboratively.

Each shareholder group has separately gained the 5 percent farmer support needed to call special meetings of their respective cooperatives to try and force the boards to investigate the benefits and risks of a merger, though dates have not yet been set for either.

Alliance shareholder Jeff Grant said it is best to wait on the outcome of Silver Fern Farm’s current capital raising before holding either meeting.

“If the capital raise changes the structure of the cooperative to be a non cooperative or in foreign ownership then it would be pointless having an SGM (special general meeting) at all,” he said. . . 

 High Beef Prices Are Fueling a Revival of Cattle Rustling in the Plains States –  Michael Graczyk:

Doug Hutchison wears a badge and carries a gun but his most effective weapon in the pursuit of livestock thieves in the nation’s largest cattle-producing territory may be his smartphone.

With it, Hutchison, one of 30 Special Rangers with the Texas and Southwestern Cattle Raisers Association, photographs suspected stolen livestock, accesses the association’s databases of livestock brands and reports of missing animals and consults with sheriff’s offices.

“I think it’s one of the greatest tools in the world,” said Hutchison, wearing a cowboy hat and jeans, his boots mired in the mud and manure of noisy auction stockyard corrals filled with nervous cattle. . .  Hat tip: AEIDEAS

Outdoors Lobby Wants Recreational Only Fisheries:

A national outdoor recreational advocacy group wants freshwater fish species such as whitebait, eels and some saltwater species ”recreational only.”

The call by the Council of Outdoor Recreational Associations (CORANZ) an umbrella group of outdoor recreational organisations, was in response to Massey University researcher Mike Joy’s call to remove whitebait and eels from commercial status and protect them by a “recreational only” classification.

Bill Benfield, co-chairman CORANZ, conservationist and author, said that commercialised species, almost without exception, struggled to be sustainable in the face of human greed. . .

 And from Kansas Department of Agriculture:
Kansas Department of Agriculture's photo.


Rural round-up

17/08/2015

More women working NZ farms – Suzette Howe:

New Zealand is seeing a rise in the number of women working in farming. For years farming has been mainly viewed as a man’s world, but the tide is turning.

Nestled away on a north Canterbury farm, Louisa McClintock is not your average teenage girl. At just 17 she’s fallen in love with farming. She has quit school and is taking up the reins of her granddad’s farm.

“Everyone thought I was going to stay at school till year 13 and do the whole nine yards and go to uni, but I don’t think there’s anything I’d rather be doing; farming is it,” she says. . . 

Getting through the tough times – Andrew Hoggard:

We at least now know where we are with the much anticipated Fonterra forecast payment.  A price of $3.85 per kilo of milk solids is a real shocker.  There’s not going to be many farmers making anything on that payout.

That said, what can realistically be done about helping farmers through the tough times ahead for at least the next few months?

First, there is the no brainer stuff.  Talk to the bank manager.  Talk to advisers.  Put a bit more effort into communication with the family – they will be feeling the pressure as well.  . . 

Water Proposals jeopardise Southland’s farming future

Federated Farmers Southland strongly opposes Environment Southland’s draft ‘Water and Land Plan and are planning meetings to discuss the rural community’s concerns.

President of Federated Farmers Southland, Allan Baird, says “In its current form, the cost to Southland farmers will be crippling and there will be large flow on affects for the wider Southland economy.”

“As proposed, this Plan would severely limit or prohibit development, flexibility, and innovation for farming businesses, which will have huge consequences for Southland’s economy.”

“Farmers want good water quality just like every other Southlander; by progressing the current outcomes based approach that focuses our resources on the priority hot spots. This is consistent with what the Parliamentary Commissioner for the Environment is encouraging in her recent report, but we can’t do that without the flexibility to adapt to the environment and regulatory changes.”    . . .

NZ and Australia likely to trigger milk quota – Allan Barber:

For the first time since 2004 New Zealand and Australian beef exporters look almost certain to run out of US beef quota before the end of the year. High kills in both countries have seen an excess of beef being processed, well ahead of the normal annual production trend.

New Zealand’s annual quota allows shipments of 213,402 tonnes, much of it manufacturing beef for the fast food industry, but also higher value prime beef cuts in the pre Christmas period. If the quota runs out, these cuts will be at risk. The excess production this year is a direct result of the high cow cull because of the downturn in dairy prices. One processor told me the present slaughter rate was four times the normal amount. . . 

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

TPP – it’s time for a breather – Keith Woodford:

The failure to reach closure at the recent TPP negotiations in Hawaii may be a blessing for New Zealand. It may give some time for our negotiators to reflect on what we hope to achieve and what we are prepared to concede.

Most farmers will be supporters of the TPP. They will be working on the apparently reasonable assumption that more free trade has to be good value. . .

Commission releases draft report on 2014/15 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and is currently set by Fonterra at $4.40 per kilogram of milk solids for the 2014/15 season.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s (DIRA) milk price monitoring regime. The review assesses whether Fonterra’s approach delivers incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The Commission’s overall view is that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the DIRA. . . 

 


Rural round-up

15/07/2015

FMG gets $3m flood, snow claims – so far:

The country’s largest rural insurer Farmers Mutual Group says it has received $3 million worth of claims related to the flooding and snow that hit the country last month.

FMG said the severe flooding in the lower North Island prompted 264 claims from the Manawatu-Whanganui and Taranaki regions, and snow damage in Canterbury led to 80 claims being lodged.

General manager of advice and insurance Conrad Wilkshire said most of the claims were for damage to houses, contents, sheds, and farm equipment.

In one case, a farm building was swept down a river. . .

Fonterra’s rivals tell DIRA review there is insufficient competition for dairy industry deregulation – Fiona Rotherham:

(BusinessDesk) – Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry.

In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened.

Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. . .

 Kiwi Developed Sugar Substitute to Tackle Obesity Problem:

A new low-calorie sugar alternative made entirely from fruit and developed by Kiwis, is set to offer companies around the world a natural way to reduce sugar in everyday foods and beverages such as cereals, yoghurts and juices, without compromising flavour.

Developed by Kiwi and Chinese joint venture company Guilin GFS Monk Fruit Corporation, Sweet-Delicious is a natural fruit juice made from a small Chinese melon called monk fruit. As a natural low-calorie alternative to sugar and artificial sweeteners it is a new way to tackle the growing obesity epidemic. . .

 ‘Drought man’ coming to Lincoln:

“Innovate or stagnate” will be the main message from Grassmere farmer Doug Avery when he visits Lincoln University next Thursday.

Avery’s talk about turning drought and desperation into sustainability and success will take place on Thursday, July 16 at 7pm.

Avery, also known as the ‘drought man’, says he understands the value of farmers learning from farmers. . .

Fonterra strengthens ties with the Netherlands:

Associate Minister of Trade Todd McClay says a new Fonterra ingredients factory in the Netherlands, opened yesterday by Dutch King Willem-Alexander, marks an exciting step forward in agribusiness collaboration between New Zealand and the Netherlands.

The state-of-the-art factory in Heerenveen, Friesland, has been developed in partnership with Dutch conglomerate A-Ware Food Group, which has built a major new cheese plant next door.

Whey and lactose, by-products of A-Ware’s cheese-making process, will be processed into specialty ingredients by the Fonterra plant. These will be used in high-value paediatric, maternal, and sports nutrition products for sale in the European Union and beyond. . .

Kiwifruit Claim Wins First Round:

The High Court at Wellington has ruled in favour of The Kiwifruit Claim and against the Crown on all substantial points, in a judgment released on 8 July.

Kiwifruit growers and post-harvest operators who were negatively affected by Psa have untilFriday 9 October 2015 to sign up to The Kiwifruit Claim, the court has ruled.

The court said growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action, which had been opposed by the Crown Law Office (CLO). . .

Hemp seed food sales remain on horizon:

The adoption of a hemp seed food standard remains on the horizon, following work requested by the Food Standards Australia New Zealand Ministerial Forum earlier this year says Food Safety Minister Jo Goodhew.

“New Zealand supports a standard allowing the sale of hemp seed food products, and I am hopeful that the Ministerial Forum will be able to assess the proposed hemp standard again early next year,” says Mrs Goodhew.

“The best available science shows us that hemp seed is safe to eat and has positive nutritional properties. However, the Ministerial Forum had some unanswered questions when it met in January. . .

 

Review of Hemp as a Food:

The NZ Grain and Seed Trade Association (NZGSTA) was pleased to learn today that the Australia and New Zealand Ministerial Forum on Food Regulation (the Forum) was continuing to address some concerns around the sale of hemp seed foods for human consumption.

Responding to the Forum’s communiqué issued from Hobart Thomas Chin, association general manager, said the industry realises that the NZ Minister and officials were supportive of hemp seed foods and they are continuing with strong efforts to help see the development of a new cropping opportunity for NZ primary producers and manufacturers. . .

 

Wool Market Slightly Easier:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the first wool auction of the 2015/16 season offering 6,800 bales comprising predominantly 80 percent short second shear wools, saw a 92 percent clearance with a slightly softer tone.

Despite a weaker New Zealand dollar compared to the last sale on 25th June, with the weighted currency indicator down 1.96 percent, the bulk of the offering was firm to 2 percent easier.

Mr Dawson advises that the seasonal slow-down in order, approaching European vacation period and well stocked supply lines in China are limiting new orders for wool temporarily. . .

 


Rural round-up

10/07/2015

Former Fonterra boss Craig Norgate dies:

The former Fonterra boss, Craig Norgate has died. He was 50.

Mr Norgate had a spectacular rise in business, becoming head of New Zealand’s biggest company, Fonterra, at the age of 36. . .

$158,000 to protect Taranaki biodiversity:

Environment Minister Dr Nick Smith today announced a $158,000 Community Environment Fund grant for a project which aims to protect native birds and forest at Rotokare Scenic Reserve in South Taranaki.

“This funding will help support the work underway to ensure a ‘halo’ more than 2000 hectares in area surrounding the predator-proof fence of Rotokare Scenic Reserve. This funding will extend the successful work of the Rotokare Scenic Reserve Trust as well as neighbouring property owners and local councils to create a flourishing ecosystem in an area that was previously threatened by predators and land use change,” Dr Smith says. . .

ComCom to file court proceedings over price fixing – Suze Metherell:

(BusinessDesk) – The Commerce Commission intends to file court proceedings against PGG Wrightson, Elders New Zealand and Rural Livestock by the end of the month, claiming the three fixed fees charged during the implementation of a national livestock tagging scheme.

The consumer protection authority is investigating fees charged during the adoption of the National Animal Identification and Trading Act 2012, commonly known as NAIT. A spokesman for the commission confirmed it intends to file proceedings against the three agricultural companies and five undisclosed individuals before the end of this month. . .

Improvements sought for forestry scheme:

A review to increase uptake for the Permanent Forest Sink Initiative is underway and the government is seeking feedback from industry on the proposed changes, says Associate Primary Industries Minister Jo Goodhew.

Introduced in 2006, the Permanent Forest Sink Initiative was the first national scheme that allowed forest landowners to earn emissions units for the carbon stored within their forests. . .

More than one prize to aim for in South Island farming competition:

In addition to the top prize of a $20,000 travel fund, entrants in the 2015 Lincoln University Foundation’s South Island Farmer of the Year Competition will also be able to pitch for one of four special category prizes, with a cash prize of $5000 each.

Lincoln University Foundation Chairman Ben Todhunter said generous support from sponsors meant that the four prizes could again be offered this year, after their debut in the 2014 season. . .

Two Brands, Three Blokes, One New Wine Company:

Two renowned Marlborough wine brands are joining forces, with the backing of former employees.

Highfield and TerraVin Wines will now be known as Highfield TerraVin Ltd.

Winemakers Alistair Soper and Gordon Ritchie have joined with General Manager Pete Coldwell to run the new company, with all three men having some strong goals in mind. . .

 

Technology takes vineyard to the world:

One of New Zealand’s fastest growing and most innovative wine companies, Yealands Family Wines is taking its sustainability story to global markets via a leading edge, digital platform.

YealandsLive.co.nz features dynamic content captured via a series of live feeds, directly from the Yealands Estate Seaview Vineyard and Winery in Marlborough, New Zealand. The website aims to give consumers and the wine trade a unique, and authentic behind the scenes look at one of the world’s premier sustainable wine producers. . .

 

 


Rural round-up

12/06/2015

Commission opens consultation on dairy competition review:

The Commerce Commission today released a consultation paper outlining its proposed approach, timeframes and scope for its review of the state of competition in the New Zealand dairy industry.

Commissioner Dr Stephen Gale said the Commission was now seeking submissions on its proposed approach.

“Our review will look at whether the regulations are helping or hindering the efficient operation of the New Zealand dairy industry. To do this we intend to examine how competition has developed since Fonterra was established and what it might look like in the future,” Dr Gale said. . .

 Te Kuiti farmer appointed to Deer Industry New Zealand board:

William Oliver of Te Kuiti has been appointed to the Deer Industry NZ board for a three-year term.

One of three candidates for a vacant producer position on the eight-strong board, he was appointed yesterday following interviews by the Deer Farmers Association’s Selection and Appointments Panel.

Panel chair Paddy Boyd says a “robust” interview process highlighted the skills of the candidates.

“It is very reassuring in terms of governance and succession to have people of William’s calibre standing for the board, especially at a time when Deer Industry NZ has major initiatives underway to build deer farm profitability and to halt the decline in the national herd,” he said. . .

 Centrus 84 takes out International Innovation Award:

Waikato Milking Systems has taken out the International Innovation Award with its Centrus 84 Rotary Platform at Fieldays® 2015.

The Centrus 84 is the first fully-composite rotary platform and is 80% lighter than previous platforms and five times stronger.

“Sometimes you get a feel for something,” says Executive Manager Dave Cassells. “When I saw the concept drawings for this one, I knew we had something unique.

Federated Farmers Fielday Seminar: ‘Precision agriculture’ :

Agri Innovation expert, Mark Burgess, has told Federated Farmers seminar at the Mystery Creek Fieldays this morning that automation is king amongst the technology options for farmers.

He said that automation is the primary driver for farmers investing in new technologies on-farm whereas technologies that support improved farm management are lagging.

“Farmers are at risk of being overwhelmed with more data than they can make use of, however we are beginning to see integration through increasingly sophisticated farm management software, which is removing barriers enabling farmers to use more technology in support of their farm management decisions.” . . .

Cow sickness not from genetic modification:

Federated Farmers’ President and science spokesperson William Rolleston says recent stock sickness or deaths are likely to have been caused by a high sugar content in the fodder beet they have been eating.

“It’s got nothing to do with genetic modification as GE Free New Zealand has speculated.  Fodder beet has only recently been brought into widespread use in New Zealand and unfortunately some farmers are still coming to terms with how to best feed it to their stock.”

“We know there is a problem with stock feed transition and there is some cautious advice, such as that from Dairy New Zealand, on how to manage feed of fodder beet without complications.” . .

Fieldays a pathway into the primary industries – Chris Lewis:

Today marked the start of Fieldays, an event I have enjoyed going to since a kid, now I take my two children to experience it. I guess it’s a pathway into the primary industries where you start as a young one looking at all the agriculture equipment, eventually graduating to talking shop with sales reps and renewing relationships with your key suppliers.

My children remember the farm servicing people that came on farm to help us and then recognise them again at Fieldays when we talk business. This is how relationships start for generations and good companies recognise this with many businesses I deal with being family owned and generational. . .

New partnership to provide enhanced pasture management for farmers:

Farmer-owned co-operative LIC has entered into a partnership with Precision Farming Ltd, supplier of GIS-based systems that manage the application of farm nutrients to optimise pasture growth including fertiliser and effluent.

The two companies have signed an agreement whereby Precision will share its nutrient management functionality for integration with the co-op’s MINDA farm management system used by more than 90 per cent of NZ dairy farmers.

LIC chief executive Wayne McNee said it would provide enhanced information for farmers about their pasture and feed availability. . .

 

KPMG Agribusiness Agenda 2015 highlights the importance of improved rural broadband:

Today’s release at NZ National Field Days by TUANZ member, KPMG, of the Agribusiness Agenda 2015 highlights the importance of improving access in the rural sector to high speed broadband. The Agenda notes that since the last release in 2014 there has been an increased priority attached to delivering high speed rural broadband. This year it has risen four places in a list of strategic issues of concern to be the second equal along with food safety. The first issue of concern being ensuring a world-class biosecurity system.

Ian Proudfoot, KPMG Global Head of Agribusiness, said that “Fast connectivity in rural areas not only supports economic growth. It enhances healthcare delivery, overcomes isolation, and enables the unemployed to develop skills and become productive.” . .

 


Rural round-up

21/05/2015

Extra support for drought affected North Canterbury:

Primary Industries Minister Nathan Guy has met with drought-affected farmers in Cheviot, North Canterbury today and says they’re still feeling the impacts of drought.

“North Canterbury – and the Cheviot area in particular – has missed most of the recent rainfall, and continues to face severe drought conditions,” says Mr Guy.

“Because of this, an additional $20,000 is being allocated to the North Canterbury Rural Support Trust. This will help them with more intensive activities, including individual visits and community events. . .

Livestock moved out of Canterbury drought – Hamish Clark:

Farmers have shipped tens of thousands of sheep and cattle out of north Canterbury and hundreds of tonnes of feed in as the drought there deepens.

The worst-hit area is around Cheviot, which is north of Christchurch, and the locals are desperate for rain.

The ewes are sniffing and searching the parched earth for a single blade of green grass, but there is none.

Cheviot farmer and local Chris Jefferies says farmers in the area are really struggling. . .

Supreme winners open their gates:

Environmental farm award winners for the Horizons Region opened their gates and shared their secrets with other farmers last week.

William Akers, Laura Oughton, Hugh and Judy Akers from Broadlands Station in Ashhurst were announced as the 2015 Ballance Farm Environment Awards supreme winners in March. As part of winning the award, recipients are asked to host other farmers on farm in order to share ideas and inspire others.

Horizons Regional Council environmental manager for land Grant Cooper was on the judging panel for the final round and says Broadlands is a straightforward, efficiently run station. . .

Ministers request report on dairy competition:

Primary Industries Minister Nathan Guy and Commerce and Consumer Affairs Minister Paul Goldsmith announced today they will request a report on the state of competition in New Zealand’s dairy industry from the Commerce Commission.

The report is required under the Dairy Industry Restructuring Act, which allowed for the merger of our largest dairy co-operatives to form Fonterra Co-operative Group Limited.

The DIRA contains provisions to ensure contestability in New Zealand’s farm gate and factory gate markets. These provisions are intended to expire when there is workable competition in the domestic dairy market. . .

$5m new funding for forestry research partnership:

The Government will invest $5 million over seven years in a research partnership to increase the competitiveness of the forestry sector, Science and Innovation Minister Steven Joyce announced today.

“Forestry is New Zealand’s third largest export earner – behind dairy and meat, contributing around $5 billion to our exports. This investment aims to strengthen the ties between research organisations and the industry to produce excellent research driven by industry needs,” says Mr Joyce.

The new partnership is led by Future Forests Research, an industry-operated entity, in collaboration with Scion, the University of Canterbury, and the NZ Dryland Forests Initiative. . .

NZ export log prices hit 3-year low; may start picking up as demand improves – Tina Morrison:

(BusinessDesk) – New Zealand export log prices, which fell to a three-year low this month, may start to pick up as demand improves in China, the country’s largest market.

The average wharf gate price for New Zealand A-grade logs fell to $83 a tonne in May, from $94 a tonne in April, marking the lowest price since May 2012, according to AgriHQ’s monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures average log prices weighted by grade, dropped to 88.40 from 93.29 in April.

The price for New Zealand A-grade logs delivered to China fell to US$99/JAS from US$111/JAS last month, the lowest level since AgriHQ started collecting the data in 2012. . .

Southern Dairy Hub Case to Be Presented:

Trustees of the Southern Dairy Development Trust are very pleased with the support received for the Southern Dairy Hub, with 516 farmers and businesses pledging $1.306 million in support.

“It’s an absolutely fantastic result and a huge endorsement for the Hub project,” Chair Matthew Richards says. “We are grateful and thankful for the support from our community and are confident we will get a good hearing in front of our industry partners, DairyNZ and AgResearch.”

Mr Richards says the official numbers includes postal pledges that arrived following the April 30 pledge deadline and takes the result to 55% of farmers between Dunedin and Bluff as having pledged their financial support. . .

Rural Business Network Launches Free Mentoring Initiative:

Rural Business Network (RBN) in partnership with Business Mentors New Zealand (BMNZ) has launched a new initiative offering mentoring support to rural businesses throughout New Zealand. The project is called ‘Rural Mentor’ and will provide a tool to enhance on-farm profitability and enable access to skills and knowledge that isn’t commonly known to be available.

The new Rural Mentor initiative sees the BMNZ registration fee waived for a limited number of NZYF and Rural Business Network members

Daile Jones, National Rural Business Network Coordinator says `Farmers in the sheep, beef or dairy sector operating their own business or farm managers that want a fresh perspective, will be matched with a business professional who can offer confidential advice, assistance and support that will help overcome business challenges, set new goals and achieve success. There’s no lack of knowledge out there, just a shortage of knowing what information is available.” . . .

Call OSPRI if you’re moving this Gypsy Day:

Don’t put your livelihood at risk when moving or selling stock over the Gypsy Day period; make sure you call OSPRI to update your NAIT and TBfree details and record all animal movements.

“This will help protect New Zealand’s reputation as a producer of high quality, safe food and maintain access to valuable international markets,” said Dr Stu Hutchings, OSPRI Group Manager.

Up to date NAIT data allows farmers to get back to business sooner in the event of a biosecurity incursion or food safety concern and is already being used to contain existing animal diseases like bovine tuberculosis (TB). . .


Rural round-up

09/05/2015

Low-Cost Pasture-Based Dairying Still Our Best Bet, Say Farm Environment Leaders:

New Zealand dairy farmers shouldn’t lose sight of their competitive advantage, say farm environment ambassadors Mark and Devon Slee, who recently returned from a study tour of the Northern Hemisphere.

In late March the Canterbury dairy farmers and National Winners of the 2014 Ballance Farm Environment Awards embarked on a 25-day trip to the United Kingdom, Netherlands and Ireland, visiting a wide range of dairy farms

Mark says a key aim of the tour, which was facilitated by the New Zealand Farm Environment Trust and supported by a range of industry groups, was to study intensive dairy farming systems in Europe and to find out how farmers were using technology to improve sustainability. . .

Pacing global changes a big ask for Fonterra – Fran O’Sullivan:

Tim Groser’s warning that the dairy sector would effectively have to guts it out during a period of low milk payouts was timely.

It’s perhaps easier said than done maybe from the perspective of a Trade Minister.

But dairy farmers are a resilient lot. They’ve been through cyclical times before.

Yet, last week’s Fonterra announcement that the co-operative has downwardly revised its 2014/2015 payout forecast back to $4.50/kg milk solids (from $4.70) was still a hard knock for those that had factored the higher track into their own financial planning.

Federated Farmers pointed out just how difficult it was for some dairy farmers with their comment that the average Canterbury dairy farmer was now facing a loss of 91c for every kilogram of milk solids that they produced. . .

ANZ Bank was most aggressive in rural rate swaps sales to farmers, ComCom says – Paul McBeth:

(BusinessDesk) – ANZ Bank New Zealand, the country’s biggest lender, was the most aggressive in pitching interest rate swaps to farmers, over which it subsequently agreed to pay $19 million in compensation, the Commerce Commission says.

General counsel competition Mary Anne Borrowdale told Parliament’s primary production select committee that of the three banks to settle with the regulator, ANZ had the most customers involved and was investigated over both the way it was able to move its margin and the break fees it charged farmers for an early release. While ANZ announced its settlement with the regulator before ASB Bank and Westpac Banking Corp, it only just made its offer to farmers yesterday. The three banks’ collective settlements totalled $24.2 million. . .

Landmark animal welfare legislation welcomed by veterinarians:

The New Zealand veterinary profession welcomes today’s landmark passage of the Animal Welfare Amendment Bill which brings greater clarity, transparency and enforceability of the country’s animal welfare laws, further strengthening New Zealand’s excellent reputation for animal welfare.

The New Zealand Veterinary Association (NZVA), which played a key role in helping to shape the Bill, says some of the key changes include the legal recognition of animal sentience, which is sensation or feeling in animals, for the first time in New Zealand law.

NZVA President Dr Steve Merchant says: “Veterinarians are at the vanguard of animal welfare advocacy and public support is behind us in the call for greater clarity on issues concerning animal welfare and increased sanctions for animal cruelty. . .

 

 High prices and volumes for avocado growers:

Avocado exporter Avoco says its growers are celebrating the end of a season where they not only got a bumper crop – but decent prices for their fruit too.

Avoco said strong end-of-season demand from Australia lifted returns for growers – to $15 per tray for large avocados and $14 per tray for smaller fruit.

Avoco director John Carroll said the company exported a record volume of fruit – 4.5 million trays, out of a total 7 million trays – and still managed to get good returns for its 700 plus growers. . .

Anchor Gives More New Zealanders an Organic Milk Choice:

Anchor is making organic milk more accessible to New Zealanders with the nationwide launch of Anchor Organic.

Fonterra Brands New Zealand Managing Director Tim Deane said that with other organic milk brands only available in certain regions or very expensive, Anchor is on a mission to make organic milk more widely available at a fair price.

“We want to put organic milk in reach of more New Zealanders. We’ve done just that through our nationwide distribution and providing Anchor Organic at an everyday price that works out at only about 20 cents extra per glass compared to our standard Anchor milk,” said Mr Deane. . .

Wool Prices Bounce:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that a weaker New Zealand dollar, limited wool volumes pressuring exporters and renewed client interest, combined to lift local prices across the board.

Of the 6,350 bales on offer, 99 percent sold.

The weighted indicator for the main trading currencies was down 1.79 percent compared to the last sale on 30th April.

Mr Dawson advises that Fine Crossbred Full Fleece and longer shears were 7 to 10 percent dearer, stimulated by resurgent Chinese interest with shorter types 3 to 6 percent firmer. . .


Rural-round-up

27/03/2015

Ahuwhenua Trophy finalists announced:

Primary Industries Minister Nathan Guy has congratulated the three finalists in this year’s Ahuwhenua Trophy competition, celebrating excellence in Māori farming.  

Mangaroa Station in Hawke’s Bay and Gisborne, Paua Station north of Kaitaia, and Maranga Station near Gisborne were announced as the finalists for the 2015 Ahuwhenua Trophy BNZ Māori Excellence in Farming award at an event tonight in Parliament. . .

 Can green-lipped mussels be the next heavy lifter? – Keith Woodford:

If New Zealand is to double agri-food exports by 2025 in line with Government targets, then we are going to need some lateral thinking. We won’t get there just by doing more of what we have been doing.

Related to this, in recent weeks I have been giving thought as to whether the green-lipped mussel can be one of the heavy lifters that can get the job done for New Zealand.
The green-lipped mussel is indigenous to New Zealand. The species is found nowhere outside our coastal waters. It is easily identified in the shell by its distinctive emerald green colour. The flesh is also distinctive from other mussels.

Maori would no doubt have harvested green-lipped mussels for many hundreds of years, but most of nature’s mussels are well hidden. In most years there are huge amounts of microscopic mussel spat washed up attached to seaweed on the Northland Coast, particularly on the so-called Ninety Mile Beach. Exactly where it comes from no-one knows. . .

 – Keith Woodford:

A Chinese language report on WeChat –China’s popular social media platform – indicates that the Chinese infant formula market is about to become a lot more price competitive. According to a usually reliable Chinese industry website, the New Hope Nutritional Foods Company is about to introduce a new line of products called ‘Akarola’ which will come from New Zealand and sell for less than one third the price of similar products.

New Hope already has a New Zealand sourced brand called ‘Akara’ which is manufactured and canned by Canterbury-based Synlait. Linked to this, Synlait announced in late 2014 that it was taking a 25 percent share in New Hope Nutritional Foods and that this would create an integrated supply chain from farm to consumers, in line with Chinese Government regulations. . .

Canterbury/North Otago Dairy Awards Winners Determined to Advance in Industry:

The 2015 Canterbury/North Otago Sharemilker/Equity Farmers of the Year, Justin and Melissa Slattery are passionate and determined to advance in the dairy industry – in fact they want to be farm owners before they are 35 years old.

The Slatterys took out the major title and claimed $18,800 in prizes at last night’s 2015 Canterbury/North Otago Dairy Industry Awards annual dinner held at the Airforce Museum of New Zealand at Wigram. The other big winners were Mark Cudmore, the 2015 Canterbury/North Otago Farm Manager of the Year, and James Davidson, the 2015 Canterbury/North Otago Dairy Trainee of the Year. . .

Food Safety Law Reform Bill consultation begins:

Food Safety Minister Jo Goodhew has welcomed the consultation process for the Food Safety Law Reform Bill, which will address the recommendations from the Whey Protein Concentrate (WPC) Contamination Inquiry.

“We have made substantial progress implementing the WPC Inquiry recommendations; however, some recommendations require legislative change,” Mrs Goodhew says.

“The Food Safety Law Reform Bill will address these recommendations and reinforce New Zealand’s reputation as a reliable supplier of safe and suitable food.

“We are seeking feedback from the public and those in the food industry to ensure the proposed changes are usable and practical for all involved.” . .

Red Meat Sector welcomes signing of Korea FTA:

The recently signed Free Trade Agreement (FTA) with Korea will be a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports, according to the Chairmen of Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA).

Trade Minister Tim Groser signed this week the New Zealand Korea FTA with his Korean counterpart.

“This deal is critical for New Zealand sheep and beef farmers and meat exporters, keeping us competitive in this key market,” said Beef + Lamb New Zealand Chairman James Parsons. . .

 Commerce Commission issues draft determination on wool scouring assets application:

The Commerce Commission has reached a preliminary view that it should allow Cavalier Wool Holdings to acquire 100 per cent of New Zealand Wool Services International’s wool scouring business and assets.

The Commission has today published its draft determination on Cavalier Wool Holding’s application under the Commerce Act for authorisation of the proposed acquisition.

“Our preliminary view is that the proposed acquisition would substantially lessen competition in the North and South Island wool scouring markets, and in the small domestic customer wool grease market. Cavalier Wool Holdings would essentially have a monopoly on the supply of wool scouring services and the supply of wool grease post-acquisition. However, at this preliminary stage, the Commission is currently satisfied that the public benefits of the acquisition would outweigh the loss of competition,” said Commerce Commission Chairman Dr Mark Berry. . .

 


Rural round-up

15/12/2014

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. . .

 

 


Rural round-up

04/12/2014

Another industry signs up for biosecurity partnership:

Primary Industries Minister Nathan Guy has welcomed Pipfruit New Zealand onboard as the third industry to join the Government’s biosecurity partnership.

The Deed of the Government Industry Agreement (GIA) for Biosecurity Readiness and Response was signed by Pipfruit New Zealand today.

“This means that apple and pear growers and the Ministry for Primary Industries (MPI) can work closely together and make joint decisions on readiness and response to manage mutual high priority biosecurity pests,” says Mr Guy. . .

More support for Otago farmers to improve water quality:

Dairy farmers in Otago are receiving more support to meet upcoming water quality rules through a series of DairyNZ ‘EnviroReady’ field days being held with the support of Federated Farmers and Beef + Lamb.

More than 200 farmers and rural professionals attended four recent field days in both north and south Otago, with the last one being held this week at Elderslie, near Oamaru.

DairyNZ’s sustainability team manager Theresa Wilson says the farmers were given an understanding of new regional environmental rules and regulations presented by Federated Farmers’ policy staff. . .

ANZ to pay $19 million in interest rate swaps case:

The Commerce Commission has reached a $19 million settlement with ANZ Bank New Zealand Limited (ANZ) in relation to the marketing, promotion and sale of interest rate swaps to rural customers between 2005 and 2009.

The settlement will see ANZ establish a payment fund of $18.5 million, to be used to make payments to eligible customers (those who registered their complaints with the Commission). The Commission will also receive $500,000 towards its investigation costs, and some monies from the payment fund are able to be distributed to charitable organisations for the assistance of the rural community. . .

Federated Farmers call Commerce Commission ANZ settlement ‘fair and equitable’:

Federated Farmers have described the Commerce Commission settlement with the ANZ Bank over interest rate swaps as ‘a fair and equitable outcome’ for rural customers.

Federated Farmers President Dr William Rolleston says the agreement that the ANZ will pay compensatory payments to customers, who believe they were misled by their interest rate swap contacts, is the best outcome which could be expected.

“While some farmers found interest rate swaps a useful instrument, others felt they were not adequately informed of the risks should the market run against them. The Global Financial Crisis created those unexpected and unfavourable conditions. Federated Farmers wrote to the Commerce Commission asking it to investigate and the outcome today vindicates our stance,” Dr Rolleston says. . .

Rural areas need law reform – Hugh Stringleman:

Regional economies are declining when a means of revitalisation is within reach according to a new study of the potential for mining.

The New Zealand Initiative think tank has published the Poverty of Wealth, subtitled why minerals need to be part of the rural economy.

It sought to answer the conundrum of why resource-rich regions were not tapping into the wealth beneath their feet. . .

Weevil-killing wasp in demand:

Farmers in Southland have been queuing up for supplies of a small parasitic wasp used to fight a serious pest.

Scientists have warned that farms in region could be hit hard by the clover root weevil again this summer – one of the worst pasture pests that attacks and destroys clover.

AgResearch scientist Colin Ferguson said more than 200 farmers had attended workshops in Southland to find out more about the pest and where and how to release the wasps. . .

 20K signs without delay  call:

Rural Women New Zealand says this week’s accident in Canterbury, when a teen was hit crossing the road after getting off a school bus, may have been avoided if the bus had been fitted with flashing 20K signs.

Rural Women New Zealand took part in a trial of new LED signs in Ashburton last year, which included a public education and police enforcement campaign. The trial proved very successful in slowing drivers and Rural Women New Zealand hopes that the signs will be approved for general use on school buses in 2015. . .

Blue Sky Meats acquires Clover Export, adding beef, venison processing – Jonathan Underhill:

 (BusinessDesk) – Blue Sky Meats, whose shares trade on the Unlisted platform, has agreed to acquire Gore-based Clover Export, adding processing capacity in beef and venison to the range of services it can offer to sheep and bobby calf customers, while attracting new suppliers.

No price was disclosed for the transaction. Chairman Graham Cooney said Clover is about 10-15 percent of the size of Blue Sky in terms of turnover. Blue Sky’s revenue was $95.3 million in its 2014 year. More details may be given in the company’s annual report after its March 31, 2015, balance date.

Clover’s owners include European shareholders and, as part of the deal, Blue Sky has agreed to continue with Clover’s horse meat processing on a toll basis for sale into the European market. Horse meat will be a small ongoing business, amounting to about “a day a month,” Cooney said. . .

Another Success for NZ Farming:

CarboPhos®, a phosphate based fertiliser developed after conducting pot, plot and field trials and construction of a pilot plant in Nelson NZ, has been granted a patent in both New Zealand and Australia.Independently monitored trials have shown it can be applied at half the rate of the NZ mainstream phosphate product, saving time and costs for farmers. Sales continue to grow in New Zealand as farmers begin to understand the need for slower release, soil and biology friendly nutrients, compared with the mainstream fertiliser.

Chris Copplestone, Managing Director of The Growing Group commented “We are extremely proud of being able to offer a solution to farmers who understand the need for traditional nutrients, delivered in a granular form free of the traditional sulphuric acid base”. . .

 

 


Rural round-up

15/09/2014

Forestry workers dodge poachers’ bullets – Sonita Chandar:

Forestry workers are dodging bullets from poachers, says a forest manager.

They are being fired at by people hunting wild pigs illegally released in the private forests.

”Our staff shouldn’t have to worry about going to work and being shot, but this is the reality,” said Phil De La Mare, Otago regional manager for forestry plantation company, Ernslaw One.

”These unpermitted hunters forget it is a workplace and go shooting any time, even when there are people out working.

”Their actions are putting our staff and contractors in a risky situation and for us.

”Providing a safe workplace environment has become a challenge.” . .

 Putting Rustling back into the history books – Rick Powdrell:

Contrary to talk, the meat and fibre industries are not broken as the fundamentals to take both sectors forward to much greater heights remain. Still, it requires an entire industry shared vision going forward and that’s of course easier said than done.

 This undoubtedly involves strong leadership accompanied by a strong grassroots involvement.  It hardly entails re-inventing the wheel, but rather more awareness of the areas we need to improve and a path developed to redeem theses issues.

 The red meat sector strategy has already identified significant issues, with the Beef + Lamb: Red Meat Profit Partnership focusing on topics behind the farm gate with the aim of lifting on farm performance.

 This collaboration of Beef + Lamb NZ, meat companies, banks and government foreshadows a united industry approach. . .

NZ exports to EU may face stricter pesticide standards – Yvonne O’Hara:

New Zealand’s fruit and vegetable export trade to Europe could be affected by as much as $600 million if a proposed European Union (EU) reduction of some pesticide residue levels on imported food goes ahead, Agcarm chief executive Graeme Peters says.

The European Commission (EC) had been looking at regulating common crop protection products that had endocrine-disrupting properties. The EC believed reducing endocrine-disrupting pesticides would benefit the environment; be good for the health of growers, workers, rural communities and consumers; and boost the economy.

It will release criteria to identify those properties in the next few weeks. . .

Commission releases final report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its final report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses whether Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The most significant issue in this year’s review has been Fonterra’s decision to pay farmers an adjusted price for the 2013/14 season that is less than the milk price calculated under the company’s Milk Price Manual.

The Commission’s overall findings are that the way Fonterra is calculating and applying its proposed adjustment to the base milk price is not consistent with incentives for it to operate efficiently; however, the approach is consistent with contestability in the market under the Act. . .

Field day to give insight into rural work  – Yvonne O’Hara:

Rural Contractors New Zealand (RCNZ) is to hold its second field day on September 17 at Brian Hughes’ yard at Waimatua, near Invercargill, from 10am to 3pm.

RCNZ vice-president and contractor David Kean, of Centre Bush, said the field day, held in association with Work and Income, encouraged people to find out what it was like working in the agricultural contracting sector.

”People can drift in and drift out again throughout the day,” Mr Kean said.

Those attending the field day would have the opportunity to drive large tractors and operate an assortment of machinery under supervision. . .

Farmers’ need for speed – Chris Lewis:

We are ready when you are, and we have been ready for some time. The key investors and the next government need to know farmers and rural households are sick of the inferior connectivity they are receiving. We are in the need for speed and reliable connectivity; it is not only imperative for rural productivity, but for empowering rural households.

The agricultural industry generates 73 percent of New Zealand’s merchandise exports, so you would think that the powers and investors that be, would recognise a gaping hole when they see it. What is not ok is that whilst rural businesses and households are paying for the same services as our urban counterparts, we are not getting the same results.

Market research proves rural New Zealand is being neglected. We are armed with the latest devices, on average 9 connectable devices per business and 5 to 6 of those connected at one time, but have limited infrastructure to use them. Chorus recently went to the rural market through Colmar Brunton to find out exactly what we have been dealing with, and it should come as no surprise that they found we have the same level of needs as urban businesses and households. . .

In Burundi, Viola Nsengiyumva turns two acres into a profitable business – Food Tank:

Viola looks out over the two acres of land she and her husband, Deo, inherited from her father. The fields are thick with bushy, yellow-green vines. The beans are ready to be harvested.

Two and a half years ago, Viola’s fields were nearly bare. Even though she and Deo had land, they could not afford the seed and fertilizer needed to plant on all of it. Harvests were low, with just enough to feed the family. There was no surplus to sell for income.

“Before One Acre Fund, we would just manage to have enough to eat. We couldn’t sell anything we grew,” Viola says. “I would go to purchase fertilizer, but I would not be able to buy enough.” . . .

Do You Have the Correct Licence for the Coming Season?:

Rural Contractors New Zealand (RCNZ) is urging its members to ensure they have all the correct transport licences for the coming season.

RCNZ president Steve Levet says with the new season fast approaching it is timely for rural contractors and their staff to check to see they have the correct licence AND a ‘Wheels Endorsements’ if required.

“It is incumbent on rural contractors to ensure both they and their staff have all the correct licences when moving their tractors and machinery around the country,” he adds.

“There are no excuses for not having the correct licenses and/or wheels endorsement. If contractors are not sure they should find out – all the necessary information is under the members section of our website: www.ruralcontractors.org.nz .”

Mr Levet says the different types of licences rural contractors may require include: . . .


Rural round-up

15/08/2014

Commission releases draft report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses if Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The scope of the Commission’s review is only to look at the base milk price, not the retail price that consumers pay for processed milk. . . .

 

Fonterra’s farmgate milk price out of step with efficiency – Pattrick Smellie:

 (BusinessDesk) – The Commerce Commission says Fonterra Cooperative Group’s decision to cut the last season’s forecast payout to farmer shareholders by 55 cents per kilogram of milksolids below the result produced by its Farm Gate Milk Price calculation is not consistent with the milk price regime’s intention to make Fonterra operate efficiently.

However, it says the decision – the first ever taken to vary the payout from the calculated level since the Farm Gate Milk Price regime came into force in 2009 – was consistent with ensuring competitive provision of milk to alternative suppliers, the commission concluded in its annual review of the regime.

Under the Dairy Industry Restructuring Act, which allowed a merger to create Fonterra despite creating a dominant local market player, the commission must monitor how Fonterra sets the price it pays farmers for milk as part of efforts to ensure it’s possible for local dairy market competitors, such as Synlait or Westland Milk, to emerge.

Under the monitoring and reporting regime, the commission has no ability to force any change on Fonterra. . .

 

Latest dairy farm visits reveal poor record keeping:

The Ministry of Business, Innovation and Employment’s Labour Inspectorate has released the results of the third phase of its national dairy strategy, which involved visits to farms that employ migrant workers.

The findings show that while no exploitative conduct was found, a quarter of the farms visited were in breach of employment laws for poor record keeping.

Senior Labour Inspector Kris Metcalf says the visits were part of a long-term operation to check compliance with minimum employment obligations at dairy farms across the country.

“The majority of the 42 dairy farms visited in this phase were meeting minimum employment standards,” says Kris Metcalf.

“However, 11 farms were found to be in breach of their minimum employment obligations which is disappointing. . .

Government migrant dairy worker survey highlights procedure hole:

Following the third phase of the Ministry of Business Innovation and Employment’s (MBIE) dairy strategy, focussed on migrant workers, Federated Farmers knows a sizable minority of farmers still need to meet basic employment law and the Federation is offering to help.

“The latest information from MBIE shows that there has been a significant improvement in the performance of dairy farmers, but far too many are failing to take accurate time sheets seriously enough,” says Andrew Hoggard, Federated Farmers Employment Spokesperson.

“We are pleased MBIE inspectors did not find any exploitative behaviour of migrant workers on the 42 farms they visited. That said we’ve still got a bit of work to do with our guys on record keeping and basic employment practices. . . .

Softening the dairy blow:

• NZ dollar is under pressure
• Interest rate predictions delayed
• Meat sector outlook remains bullish

While eleven of the last twelve dairy auctions have recorded price falls, the sheer magnitude of the falls is bringing other factors in to play, according to the latest ASB Farmshed Economics Report.

“With dairy prices down by 37 percent on a year ago, the NZD has finally come under some pressure” says Nathan Penny, ASB Rural Economist.

“The NZD has passed its peak. We expect the NZD to trade at around 85 US cents for the rest of the year.”

“The dairy price falls are also a major reason why we’ve pushed back our interest rate call.” ASB Economics now expects the next OCR increase in March 2014 rather than their previous call for a December 2014 hike. . .

 

Working group for dairy processing sector:

Primary Industries Minister Nathan Guy has announced the establishment of a working group to develop a ‘roadmap’ on how to meet the future capability needs of the dairy processing sector.

“This was a recommendation of the independent Government Inquiry into the Whey Protein Concentrate (WPC) Contamination Incident last year. It found that our food safety regulatory model for dairy is among the best in the world, but also recommended improving people capability to strengthen the food safety system.

“The inquiry highlighted the shortage of experienced people with processing expertise across the industry’s regulatory sector, and at all levels of the system. . .

 Does Australia want to compete? – Jo Bills :

Recently the Business Council of Australia released a report it commissioned from McKinsey & Co – Compete to Prosper: Improving Australia’s global competitiveness.

It was fascinating reading – taking a helicopter view of the Australian economy and the global competitiveness of industry sectors.

Most of us probably regard Australia as a trading nation, but the McKinsey analysis highlights the fact that our economy remains quite inwardly focussed – while we are the world’s 12th largest economy, we rank 21st in terms of global trade – well behind some that you might assume we should be ahead of.

As part of the study, the McKinsey number-crunchers developed a Relative Competitiveness Score, applied it to all sectors of the Australian economy and found that only one sector – agriculture – stood out as truly competitive. . .

Boost for wilding tree control in Waimakariri:

A group of volunteers dedicated to clearing wilding trees around Flock Hill in upper Waimakariri is to receive a major funding boost, Associate Conservation Minister Nicky Wagner announced today.

Waimakariri Ecological and Landscape Restoration Alliance will receive $309,000 over the next three years from the Department of Conservation’s Community Conservation Partnership Fund.

“Wilding trees are now the most significant threat to biodiversity and infrastructure in the 60,000 hectares of public and privately owned lands in the upper Waimakariri Basin. . .

Forest contractors welcome WorkSafe submission:

Today the government’s safety agency for forestry, WorkSafe NZ, has publicly released its submission to the panel of the Independent Forest Safety Review. The Forest Industry Contractors Association (FICA), the industry group that originally initiated the review, has welcomed the comments from the regulator.

“We’re pleased that some vital issues have been highlighted by Gordon MacDonald’s WorkSafe NZ team,” says spokesman John Stulen of the Forest Industry Contractors Association, “They’ve made some very practical observations vital to making change in our industry.”

Stulen says WorkSafe NZ has been open and frank in their criticism of some shortcomings, yet has also been constructive at the same time. . .

Feed Partnership Set to Shake Up South Island Mag Regime:

South Island dairy farmers can now reap the rewards of a revolutionary new Magnesium product, which is transforming Magnesium use in dairying.

Animal feed ingredient supplier, BEC Feed Solutions, is partnering with South Island animal feed manufacturer and blender, James & Son (NZ) Pty Ltd, to give the region’s dairy farmers convenient access to its Bolifor® MGP+ product.

Bolifor® MGP+ is a unique alternative to messy pasture dusting and laborious daily drenching, and contains the essential minerals Magnesium and Phosphorus in the one product. It’s anticipated thatBolifor® MGP+ will be well received in the South Island, given that farmers, vets and animal nutritionists are observing an increase in Phosphorus deficiency due to the region’s dependency on fodder beet crops and changing land use. . .


Rural round-up

09/06/2014

Review Panel releases consultation document and plans for travel:

The Independent Forestry Safety Review Panel released its public consultation document today. The document can be found on the Review’s website at www.ifsr.co.nz.

WorkSafe New Zealand statistics showed that between 2008 and 2013, there have been 967 reported instances of serious injury related to forestry and logging. In this time 28 workers died in accidents. That is just one person fewer than were killed in the Pike River mining disaster. The Review is being undertaken to address this very poor safety record.

Panel Chair, George Adams commented that “Forestry in New Zealand is far too dangerous. Everyone in the industry recognises that fact and that’s why the Review has been established. It is clear change must occur to prevent injuries and save lives. The consultation document provides an opportunity for everyone in the industry and the public to have a say in what those changes should be”. . . .

Forestry industry leaders need to own, manage and measure contractor health and safety:

Forestry industry leaders need to make themselves accountable for the health and safety of their contractors if the industry’s poor safety record is to improve, the Business Leaders’ Health and Safety Forum says.

“They need to own this issue, and they need to manage it and measure how well they and their contractors are performing on health and safety,” says Forum Executive Director Julian Hughes.

A consultation document released today by the Independent Forestry Safety Review Panel highlights that there is no simple fix to forestry’s safety problems, Julian says. . .

Time for Silent Majority to be heard:

Forest safety is something that many of the leading forest contractors take seriously. So the next step in the forest safety review process is being welcomed by Forest Industry Contractors Association (FICA) and the many forest workers their members employ.

Several industry associations have a keen interest in ensuring that as many workers as possible get their voices heard by the panel members as they move around the country to discuss forest safety and how it can be improved.

One of the groups, the Forest Industry Contractors Association, represents over 55% of the companies providing forest operations and harvesting services. With staff numbers in the thousands it is important that they find their voice and make sure it is heard by review panel members. . .

TPP to live on in other acronyms even if it fails: Groser – Pattrick Smellie:

(BusinessDesk) – The negotiated positions of parties to the Trans-Pacific Partnership trade agreement will be crucial in developing other free trade pacts that are either emerging or on the table now, even if the current negotiations fail, says International Trade Minister Tim Groser.

Speaking in the Philippines as part of a business delegation in the capital, Manila, Groser said the TPP negotiations were now “at a crucial stage”, but that if the talks were to fail, the developments they achieved would still prove useful for the ultimate liberalised trade zone, the Free Trade Area in the Asia-Pacific, otherwise known as FTAAP. . .

Spider venom may hold key to saving bees:

Researchers believe spider venom may hold the key to protecting bees from harmful toxins after finding a bio-pesticide made from a combination of plant proteins and the arachnids poison is harmful to pests but not honeybees.

It is thought that neonicotinoid pesticides are behind the dramatic decline in honeybee populations, and this catastrophe could spell disaster for humans as food production greatly relies on pollinators such as the bees.

A team of Newcastle University scientists tested a combination of natural toxins from the venom of the Australian funnel web spider and snowdrop lectin bio-pesticides and found that it allowed honeybees to forage without harm even when exposed to unusually high doses. . .

Agricultural Fieldays keeps growing:

The sprawling national agricultural fieldays site at Mystery Creek near Hamilton has been a hive of activity as exhibitors get ready for the biggest annual event on New Zealand’s rural calendar.

Most of the major structures are up, but preparations and fine tuning will continue into the late hours on Tuesday night, before the gates open on Wednesday morning.

The exhibition area covers about 50 hectares with more than 900 exhibitors on 1380 sites. . .

Top NZ dairy technology goes on show in China:

For dairy operators in China looking to build new dairy complexes, leading dairy technology innovator Waikato Milking Systems and herd management technology company Afimilk offer total milking solutions.

Whether dairy companies in China’s growing dairy industry want a whole new large-scale milking system, or high-technology products to get more out of their existing milking system, these two companies have the expertise to deliver results. The companies will have a joint display at the World Dairy Expo in Xi’an in China on 13 to 15 June 2014. . . .

Commission begins process for the 2013/14 review of Fonterra’s milk price calculation

The Commerce Commission today released a paper outlining the proposed process and timeline for a review of Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is what Fonterra pays the farmers who supply them milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year and 2013/14 is the second time the Commission will undertake a calculation review. The review will assess the extent to which Fonterra’s approach provides incentives for it to operate efficiently while providing for contestability in the market for purchasing farmers’ milk. The scope of the review is to only look at the base milk price, not the retail price that consumers pay for milk. . . .

Beef + Lamb New Zealand Welcomes Primary Sector Future Capability Report:

Beef + Lamb New Zealand says it’s important to have an understanding of the sector’s workforce requirements, to be well placed to take full advantage of the opportunities ahead.

The Minister for Primary Industries, Hon Nathan Guy, has today launched the ‘Future capability needs for primary industries in New Zealand’ report that forecasts the future workforce needs of the primary industries.

The report says that for red meat and wool, the challenge will be in training and retaining people with market and product-oriented skills as well as cultural and language capabilities. This is because over 90 per cent of the sheepmeat and beef produced in New Zealand is exported to overseas markets. . . .

Applications Open for Fonterra Farmers to Lock in Guaranteed Milk Price:

Following last week’s announcement of the 2014/15 forecast Farmgate Milk Price, applications are now open for Fonterra farmers to lock in a price for a percentage of their milk.

Building on the success of the Guaranteed Milk Price (GMP) pilot in the 2013/14 season, Fonterra has further developed the programme to give farmers even more flexibility to help manage the effects of commodity price volatility and give greater income certainty.

There will now be two opportunities in the 2014/15 season to secure a GMP on 60 million kgMS – up to 40 million kgMS is available in June, and up to 20 million kgMS is available in December. There is also a new approach to determine each GMP and allocate the available volume. . . .

Leading New Zealand wine brand celebrates a new beginning:

Matariki, one of New Zealand’s most prestigious wine brands has formally announced its return to market with the launch of its ultra-premium 2009 wines.

Now under the ownership of Taurus Wine Group Limited, the wines remain under the stewardship of John O’Connor and the watchful eye of the mother and her six daughters that form the visible stars in the Matariki constellation, appropriately re-appearing in the night sky on June 28 heralding the Maori New Year.

Matariki is marking its new beginning with the release of its flagship red blend, Quintology and single varietal range Les Filles (The Daughters), all from the 2009 vintage. . .

SATO Signs Master Service Agreement with Fonterra:

SATO, a leader in barcode printing, labeling, and EPC/RFID solutions, announced today that it has signed a Master Service Agreement (MSA) with Fonterra Cooperative Group Limited, a leading global dairy company based in New Zealand, to provide supplies, services, and support for barcode systems in Fonterra’s factories and distribution centers worldwide.

SATO has been working closely with Fonterra in New Zealand and Australia, playing an instrumental role in standardizing their barcoding systems and configurations. Furthering this partnership, SATO Holdings Corporation and Fonterra have signed an MSA which will cover all countries Fonterra operates in, allowing SATO’s global subsidiaries to better offer localized services matching the requirements of Fonterra operations in each country. Key applications that can be provided under the agreement include product traceability solutions, product anti-counterfeiting solutions, label management and printing solutions, wireless infrastructure solutions, and many more. . . .

Grand Final tickets selling out:

The showcase event of the rural community is just weeks away and tickets for events are selling out fast.

New Zealand Young Farmers members, supporters and competitors will descend upon Christchurch for the 2014 ANZ Young Farmer Contest Grand Final, 3-5 July.

Over a demanding three days the seven Grand Finalists will be put through their paces in a number of challenges, tested on all facets of New Zealand agriculture and farming.
Lincoln University Library will play host to the Official Opening, Thursday 3 July, 4.30pm, as the Grand Finalists come together for the first of two head-to-head challenges. Free for spectators. . .


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