Rural round-up

February 2, 2018

New Zealand Agribusiness Outlook 2018:

Favourable market conditions should underpin a second year of broad-based profitability for New Zealand agriculture. Where the industry chooses to direct improved cash flow and focus amid this sustained positive run will be important for many years to come. . .

Lewis Road investor Southern Pastures ties up with Westland Milk – Paul McBeth:

Dairy farm fund Southern Pastures LP, which took a quarter stake in Lewis Road Creamery last year, will link with Westland Milk Products as a supplier from the 2018/19 season and with plans for a high-value product joint venture. Separately, Westland cut its forecast milk payout for this season.

Southern Pastures and Westland signed a letter of intent where the dairy farm investor’s nine Canterbury farms will supply an extra 4 million kilograms of milk solids to Westland from 2019, and investigate a business case for a 50/50 joint venture to create products from free-range, grass-fed milk based on strict animal welfare, health, sustainability, climate change and human rights standards. . . 

Why the CPTPP is important for New Zealand:

There is no question that our small, remote nation depends on trade. But there were times during the protracted negotiations that have now culminated in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) when the visceral debate here could easily have led bystanders to believe New Zealanders specialise primarily in trading insults.

The fact that there is now a deal to be signed – after the efforts of successive prime ministers ranging from Helen Clark and John Key to Bill English and now Jacinda Ardern – is a cause for real celebration. Our role in recent decades as free-trade pioneers, in the teeth of other countries’ stubbornly defended protectionism, should be a source of national pride. Our exports reap more than $70 billion a year, but farmers and manufacturers know what courage it has taken to open our borders, forgo subsidies and eschew protectionism. They and the country are better off as a result. . . 

Environment and agriculture can both benefit from CPTTP:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says.

However, he added, the public needed to be convinced of that.

The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. . .

Farm machinery sales back to 2014 levels – TAMA:

Sales of tractors in 2017 increased markedly, just topping the previous highest recorded levels of 2014, says NZ Tractor and Machinery Association (TAMA) General Manager, Ron Gall.

Mr Gall said the association recognised that some farmers in both islands were currently experiencing hardship with the very hot and dry conditions. The challenging drought conditions may affect sales in the coming months but it was hoped changing weather would provide some relief.

Mr Gall said in 2017, a total of 4079 tractors were sold. This is up 13% on 2016, up 14% on 2015 and even slightly up on the boom dairy year of 2014, which had 4062 sales. . . 

 

Rabobank Wine Quarterly Q1: Evolution of sourcing strategies:

2017 was a dynamic year for the wine industry, marked by short-term scarcity and rising prices, according to Rabobank’s latest Global Wine Quarterly report.

The report says while “2017 was an unusual one for the wine industry, forcing all players to rethink their short-term strategies” – changing consumer behaviour, global shifts in demand volumes and changing trading frameworks, could represent long-term structural changes.

“Although the unconventional year that 2017 was may just be a one-off, it may also be enough to accelerate deeper changes that were already developing in the wine industry,” says RaboResearch senior beverages analyst Maria Castroviejo. . . 

Green light for China opens up new export opportunities for leading supply group:

Leading avocado export supply group AVOCO has welcomed this week’s announcement that New Zealand market access to China has been granted for the 2018-19 export season.

AVOCO exports New Zealand avocados to various Asian markets under its AVANZA brand and the company has been preparing for access to China for some time. Preliminary planning has included the development of a market-specific brand name designed to be the exemplar brand from New Zealand for China. . . 

Millennials are leaving desk jobs for this surprising profession – Alexandra Hayes:

The millennial generation is often called out for its social media addictions, its work habits, and even its unhealthy ideals around perfection, but according to the Washington Post, many of them are diverging from the status ladder and leading a crusade toward a different purpose entirely: farming.

Take Liz Whitehurst. Two years ago, she left her non-profit job and bought her farm, Owl’s Nest, from a retiring farmer. Now she grows an array of organically certified produce and sells to restaurants, through CSA shares, or at local farmers markets.

According to the latest Census of Agriculture in 2012, the U.S. Department of Agriculture reports that 69 percent of farmers today have a college degree, a number that suggests more millennials are leaving traditional desk jobs to pursue this very different life. . .

Manuka South® latest Manuka honey is making a legendary entrance:

The highly anticipated Limited Reserve batch of 26+ UMF features some of the rarest and most potent Manuka honey available in the world. Manuka South® is releasing only a limited amount of the high-end honey.

Manuka South® 26+ Limited Reserve – available at select Aotea Gifts stores in New Zealand – is the latest in the line of premium Manuka honey products produced by Manuka South®, a trusted brand from New Zealand Health Food Company (NZHF). But it will also be the rarest among them, because jars won’t be on store shelves long. . . 

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Rural round-up

January 25, 2018

Station faces $1m loss as big dry bites – Alexa Cook:

One of the country’s largest farming stations expects to lose about $1 million because of the harsh summer.

The 13,200-hectare Mount Linton Station in Southland has had about a quarter of its usual rainfall in the last year to date – 250 millimetres instead of more than 1000mm.

The lack of grass growth has forced the station to cull 25 percent of its 107,000 stock units.

General manager Ceri Lewis has worked on the station for 14 years and said the hot weather would hit the station hard this year. . .

Drought support events being run in Southland – Sally Rae:

Farmers and rural support professionals have been invited to attend free drought support events in Southland this week.

Organised by industry organisations, the events are being held in the Combined Sports Complex in Otautau tomorrow and the James Cumming Wing in Gore on Friday, both starting at 10.45am.

A drought committee was set up in Otago-Southland before Christmas, ready to spring into action if required, Beef + Lamb New Zealand southern South Island extension manager Olivia Ross said. . . 

Sheep and beef sector welcomes the conclusion of the CPTPP:

Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) welcome the conclusion of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) negotiations in Tokyo.

During the recent negotiations, officials resolved the outstanding issues and have agreed to meet in Chile to sign the agreement on 8 March.

Sam McIvor, chief executive of B+LNZ, said the conclusion of the agreement represents good news for sheep and beef farmers and all New Zealanders. . .

Demand for stags reflects deer farmer confidence:

Confidence in the future profitability of venison and velvet production has flowed through to the market for sire stags, with strong sales reported throughout the country, says Deer Industry New Zealand (DINZ).

Breeders report a marked improvement on last year’s results. Although no stags broke the $100,000 mark, average prices were up strongly for most sales, several by more than 50 per cent. Overall clearance rates were 94 per cent, compared with 83 per cent last year. . .

Livestock Improvement Corp first-half profit drops 22% on cost of transforming business – Paul McBeth:

(BusinessDesk) – Livestock Improvement Corp posted a 22 percent slide in first-half profit as the farmer-owned herd genetics cooperative ramped up spending to overhaul its business, which it says is vulnerable to the same disruption other industries face.

Net profit fell to $14.9 million, or 51 cents per share, in the six months ended Nov. 30, from $19 million, or 65.3 cents, a year earlier, the Hamilton-based company said in a statement. . .

Industry has huge potential, cashmere producer says:

The country’s leading cashmere wool-fibre farmer wants to breathe new life into what he describes as a stagnant industry with huge potential.

David Shaw, who farms in Central Otago with his wife Robyn, said the cashmere industry in New Zealand was still cottage-style producing hundreds of kilogrammes of wool.

That was a far cry from the need to produce somewhere between five and 10 tonnes to be able to satisfy the local market and start competing internationally. . . 

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Rural round-up

November 14, 2017

Landpro director gets time away – Sally Rae:

Otago’s Solis Norton and Kate Scott were recently named among the latest crop of Nuffield scholars. They talk to agribusiness reporter Sally Rae about their work and the adventure that lies ahead.

Kate Scott quips that Landpro — the Central Otago-based planning and surveying company she jointly founded a decade ago — is “taking over the world, one small regional town at a time”.

From a staff of one to about 30 now, the business expanded  incrementally as its reputation grew, with more people and disciplines added, and there were long-term goals to maintain that growth.

An office was established in Cromwell 10 years ago and there were now also offices in Gore and New Plymouth. . . 

Passionate about energy – Sally Rae:

“It will be an adventure.”

So says Solis Norton, of Port Chalmers, who has been named a 2018 Nuffield scholar, along with Simon Cook (Te Puke), Andy Elliot (Nelson), Turi McFarlane (Banks Peninsula) and Kate Scott (Central Otago).

He expected it would be a  very busy time but  was looking forward to making the most of the opportunity.

Dr Norton grew up in Dunedin’s Northeast Valley and went to Massey University, where he completed a bachelor in agricultural science degree in 1996, a masters degree in applied science and then a PhD in the epidemiology of Johne’s disease in New Zealand dairy herds. . . 

North Island leaders up for Australasian agri-business award:

Three diverse and inspirational young agribusiness leaders have been selected from across Australasia as finalists for the 2018 Zanda McDonald Award.
The award, regarded as a prestigious badge of honour for the industry, recognises agriculture’s most innovative young professionals from both sides of the Tasman.

Lisa Kendall, 25, hails from Auckland, and is owner/operator of Nuture Farming Ltd, a business she established to provide agricultural services to people in and around her home city. She was a Grand Finalist in the 2017 FMG Young Farmer of the Year, and took out the People’s Choice Award, the AgriGrowth Challenge and the Community Footprint Award. Kendall plays an active role in schools, encouraging urban students to consider the career opportunities in agriculture. She is also vice-chair of the Franklin Young Farmers Club. . . 

Joint efforts on water quality – Rebecca Nadge:

The Otago Regional Council is working with Central Otago farmers in a bid to monitor and improve water quality in the area.

At a meeting in Omakau last week, local farmers discussed the strategy with ORC environmental resource scientist Rachel Ozanne and environmental officer Melanie Heather.

The plan involves ongoing testing of water at Thompson’s Creek in a cross-section of three tributaries, as well as regular monitoring in Waipiata and Bannockburn.
Ms Ozanne said the project would continue until May, with testing carried out on a fortnightly basis. . . 

Strong interest shown for Future Farm programme:

Beef + Lamb New Zealand’s search for a “Future Farm” is in its final stages and farmers are being urged to get in touch if they’re interested in being part of this unique programme.

B+LNZ is seeking to lease a hill country sheep and beef property with around 6,000 stock units for the Future Farm, which will trial new technologies and farm systems. . .

TPP agreement safeguards New Zealand’s export sector:

Federated Farmers congratulates Prime Minister Jacinda Ardern and the coalition government for recognising the importance of free trade to New Zealand.

Following a frenetic few days of negotiations at the APEC summit in Vietnam, the New Zealand Trade delegation has succeeded in brokering agreement with 11 countries from the Asia-Pacific region- to move the deal forward.

Federated Farmers thanks all the Ministers and officials involved for their dedication and resolve. . . 

CPTPP important to maintain competitiveness:

The Dairy Companies Association of New Zealand (DCANZ) is welcoming the progress made towards realisation of a TPP agreement (now referred to as CPTPP).

“Timely implementation of the CPTPP market access arrangements is necessary to ensure New Zealand exporters do not end up at a tariff disadvantage into one of our largest dairy markets” says DCANZ Executive Director Kimberly Crewther

The trade dynamic for dairy in the trans-pacific region has evolved in recent months with the European Union and Japan concluding negotiation of an FTA agreement which delivers market access gains to European dairy exporters similar to those agreed for New Zealand under TPP.  . . 

Cultivate With Care After Big Wet – Bala Tikkisetty

Following the wettest winter on record, farmers are currently cultivating their paddocks for pasture or crop rotation.

As they do so, it’s important to be aware of and manage the associated environmental risks.

Sediment and nutrients from farming operations, along with erosion generally, are some of the most important causes of reduced water quality and cultivation increases the potential for problems. . . 

Argentina is saying hello to the world again – Pedro

We’re saying hello to the world again.

That’s the simplest way to understand last month’s elections in Argentina, in which the party of reform-minded President Mauricio Macri made important legislative gains, picking up seats in both chambers of our Congress.

 

As a farmer in Argentina, I’m pleased by this political victory—but I’m even more encouraged by what it means for my country’s general direction.

For too long, we’ve faced inward rather than outward. Although Argentina grows a huge amount of food and depends on global trade for its prosperity, we have behaved as if none of this mattered. The previous government slapped huge export taxes on farm products and didn’t consider the consequences. We stepped away from the world market.

This wasn’t my decision, but rather the decision of former president Cristina Fernandez de Kirchner, the head of the Peronist Party. When she took office a decade ago, export taxes were already high—and she worked to raise them even more.

The American President Ronald Reagan once made a wise observation: “If you want less of something, tax it.” . .

Vietnamese farmers flourish in the Northern Territory to become Top End’s top growers – Kirsty O’Brien:

Michael Quatch arrived in Australia as a refugee of the Vietnam War. Now he is one of the most successful growers in the Northern Territory.

During picking season, work starts well before sunrise and does not end, but Mr Quatch is not complaining — he snags a few hours of rest here and there as he works hard to get the fresh produce from his farm at Lake Bennet in the Top End onto supermarket shelves.

The 45-year-old is the biggest hydroponic farmer in the Northern Territory, running 16 hectares of shaded cropping mainly producing tomatoes and cucumbers.

But Mr Quatch had to overcome obstacles difficult to fathom when you first meet this jovial, optimistic farmer. . . 

 


Rural round-up

November 13, 2017

Fresh Food – Out of Reach:

Amy Wiggins writes in the front page of the NZ Herald on Friday November 10th 2017, that as the prices for fresh fruit and vegetables rise they are becoming out of reach for low income families. The article goes on to say that many New Zealanders are struggling to afford to buy enough fresh produce to feed their families a healthy diet.

I agree with both of these statements and in fact when you take into account the land use restrictions on the horticultural industry, contained within the Healthy Rivers Proposed Plan Change 1 (PC1); this is going to create extremely serious food security problems into the future.

A huge percentage of the country’s population rely on the Waikato Region’s fruit and vegetable producers for security of their food supply and with the restrictions on horticultural land use that occur as a result of PC1, they are going to lose the security of supply that they currently have. . . 

TPP back on with new name, Canada apparently back on board – Pattrick Smellie:

Nov. 11 walked away from the deal, but returned to the negotiating table claiming “a misunderstanding”.

Briefing New Zealand media ahead of the APEC Leaders’ Retreat in Da Nang, Viet Nam, Prime Minister Jacinda Ardern said : “I wouldn’t want to speculate but I think probably we’re in a more stable place than we were yesterday.”

Asked whether Canada was back in the tent and TPP was back on she said: “I would characterise it in that way, yes.” . . 

Red Meat sector welcomes TPP deal and its significant boost to regional growth:

Beef and Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) welcome the announcement a deal has been struck to move ahead with the Trans-Pacific Partnership Agreement, which is now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Sam McIvor, chief executive of B+LNZ, says the CPTPP will deliver significant gains to the sector. . . 

The death of rural programmes – Craig Wiggins:

The announcement that NZ on Air funding has been cut for the Rural Delivery television programme has not come as a surprise to me, having witnessed the demise of support for the Young Farmer Contest from those in control of the programming and funding of what we get to watch on television.

The time slot allocations and in turn the lack of viewers engaged in the topics being covered don’t stack up against the mind-dumbing and increasingly popular reality television series we get these days.

It’s a sign of the times that people turn on their televisions to escape reality and be entertained, not really informed now.

I would suggest that if Country Calendar didn’t have as much of an entertainment and voyeuristic content as it does then it would be in for the chop as well. . . 

Sheep shearing in New Zealand -World’s toughest jobs:

If you think you’re tough enough to do sheep shearing in New Zealand, here’s what you need to know…

About the job

Summer (December to March) is usually peak season, but this can vary by location and type of sheep, and there tend to be some opportunities available throughout the year.

The work is physically hard and whilst sheep shearing is a skill that takes years to perfect, the more basic work is ‘crutching’ which is something you can learn in a week or so. Crutchers shave just the rear legs of the sheep to keep them clean through the summer. In general, crutchers get paid around $0.50 per sheep and after a couple of weeks should be churning out around 400 – 600 sheep per day, or $200 – $300 per day (£103-£154).  . .


Rural round-up

January 1, 2017

New Govt passing up prime opportunity for rural development:

The evidence this new Government will be no friend to farmers continues to stack up, National’s Primary Industry spokesperson Nathan Guy says.

“During Question Time yesterday, I asked Regional Development Minister Shane Jones whether his $1 billion fund will support regional water storage and irrigation projects that can grow jobs and exports, and enhance the environment.

“Alarmingly, all he could say was that the final criteria for this fund is yet to be determined. . . 

Expanding global production set to increase competition in animal proteins sector in 2018:

Animal protein production is expected to expand around the world in 2018 increasing both trade competition and competition between different meat types, according to a new industry report from agricultural banking specialist Rabobank.

Rabobank’s Global Outlook for animal protein in 2018 says production increases are likely in most regions with Brazil, China and the US expected to record particularly strong production growth. In New Zealand, beef and sheepmeat production is forecast to remain similar to 2017 levels.

The report says beef and pork will be the strongest contributors to global animal protein expansion – with global beef production projected to increase for a third consecutive year in 2018, and a further year of significant growth in pork production anticipated. . . 

CPTPP to the rescue – Allan Barber:

This is truly the age of acronyms – TPP morphed into TPP11 which has now added a couple of initials while actually shrinking in scope from its original intent. But unlikely as it has seemed at several points along its tortuous journey, the mother of all trade deals, or maybe now the stepmother, is still alive in spite of Trump’s and Trudeau’s unsubtle efforts to hijack it.

My major concern before the APEC meeting in Vietnam was the strong possibility the new government would withdraw from TPP11 as it sought to renegotiate the Investor State Dispute Settlement and foreign investment clauses, when all the other signatories were willing to accept them. I freely admit I was wrong to underestimate Labour’s commitment to free trade, while overestimating the influence of New Zealand First. In the lead up to the election all the signs pointed the opposite way, while the concession extracted by Winston Peters to pursue a trade agreement with Russia provided further evidence TPP and its successors may no longer be at the front of the queue. . . 

Beef + Lamb studies threat posed by alternative proteins, considers how to respond – Rebecca Howard:

(BusinessDesk) – Beef + Lamb New Zealand is carrying out consumer research into alternative proteins in China and San Francisco in response to the rise of the rival products and wants to report back to the sector before the end of the year.

“What we have discovered is that for better or worse alternative protein is here. We are not seeing it as a replacement for now, but we are definitely seeing it as an alternative for certain types of consumers. The consumer research that we doing is to understand who those consumers are and what’s driving that behaviour,” Damien Cullinan, market innovation manager for Beef + Lamb, told BusinessDesk. . . 

New app to bring in water allowance sharing – Tracy Neal:

Farmers and growers in Marlborough will soon have use of an online tool that tells them how much water they can use on a given day.

The council is grappling with an increasing strain on water supplies, with projections for demand and the effects of climate change showing it is likely to get worse.

A new cloud-based digital system, from which users will be able to download information to a portable device, was presented to councillors at a meeting in Blenheim yesterday.

Gerald Hope of the council’s environment committee said the tool would allow real-time information that would lead to better use of water. . . 

New Zealand farmers and growers welcome EU glyphosate decision:

New Zealand farmers and growers welcome an EU majority decision backing a five-year extension to glyphosate’s licence, which was due to expire next month.

Glyphosate, a herbicide widely-used in agriculture and by gardeners, is “an efficient and cost-effective means to keeping our agricultural economy growing, our environment protected, and our country weed-free,” says Agcarm chief executive Mark Ross.

“The decision is good news for farmers as they won’t be forced to find an alternative solution for use on exports,” adds Ross. . . 

$21 million Government & dairy research collaboration to improve waterways:

The dairy sector welcomes the Government’s announcement today that it will invest alongside farmers in a seven-year $21 million research partnership that will boost the current effort to clean up rural waterways.

Minister of Business, Innovation and Employment, Dr Megan Woods, confirmed today MBIE will provide $8.4 million towards the project which aims to tackle the difficult nitrogen leaching question, nitrogen being one of the nutrients impacting water quality.

A further $11.5 million will be invested by dairy farmers through the levy they pay to DairyNZ, with additional funding support to make up the $21 million coming from CRV Ambreed and Fonterra. . . 

How NZ ag can stop getting beaten up –  St John Craner :

NZ Ag is always on the back foot. Despite the rhetoric from leaders in industry about how we need to tell our story better, we continue to be out-gunned by lobby groups like SAFE, PETA and Greenpeace. Whether it’s bobby calves, PKE, dirty dairying or most recently false free-range eggs, we’re always playing a defensive position that risks our social licence to operate.

NZ Ag could learn from those brands that have had the foresight and planning to build a strong equity. SouthWest airlines is a great example. When 9/11 occurred they were inundated with customers sending them cheques because they were worried about their viability. This was because their customer base had a fond affection for them and what they stood for: everyone has a democratic right to fly. When the botulism scare kicked in for Fonterra they found they had few friends. GSK’s Ribena got caught out after its false claims of Vitamin C was unearthed by two 14 year old school girls from Auckland. I doubt they’ve ever restored consumers’ trust. . .

NZ structural log prices rise to 24-year high, A-grade export logs hit record – Tina Morrison:

(BusinessDesk) – New Zealand structural log prices rose to the highest level in 24 years and A-grade export logs hit a record as local mills compete with the export market to secure supply for the domestic construction market amid strong demand from China.

The price for structural S1 logs increased to $130 a tonne this month, from $128 a tonne last month, marking the highest level since 1993, according to AgriHQ’s monthly survey of exporters, forest owners and saw millers. Export log prices lifted between $2-to-$5 a tonne for the majority of grades, with the price for A-Grade logs touching $128 a tonne, up from $127 a tonne last month and the highest level since AgriHQ began collecting the data in 2008.. . .

Jason Minkhorst to join Ballance Agri-Nutrients:

Senior Fonterra executive, Jason Minkhorst, has been confirmed as General Manager Sales for Ballance Agri-Nutrients, joining the farmer-owned Co-operative in early March 2018.

Jason is currently Director Farm Source Stores of Fonterra’s rural retail business, Farm Source, and has extensive commercial experience from more than 15 years in senior executive and governance roles in the dairy sector.

Ballance CEO, Mark Wynne, says Jason’s deep knowledge of agri-business and genuine passion for the primary sector will be hugely valuable as Ballance focuses on the changing needs of New Zealand farmers and growers – providing tailored nutrients and advisory services, backed by the best science and technology. . . 


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