Rural round-up

July 9, 2019

Uncertainty plus unique ownership structure drive Fonterra share volatility – Keith Woodford:

Fonterra’s shares have been on a steady downward slide for the last 18 months. In January 2018 they were selling at $6.60 dropping to $3.86 at closing on 30 June 2019.

Then this last week things suddenly turned volatile, dropping at one point on 4 July a further 10 percent to $3.45, before rising by six percent to $3.69 at close of trade on 5 July.

The causes of the long-term drop are well understood. Very simply, Fonterra made a loss of $196 million in financial year 2018 largely because of write-down on assets. Fonterra is also now in asset-selling mode to strengthen its balance sheet. Non-farmer investors are coming to understand that, with family silver having to be sold as well as some rubbish disposal, any turnaround is likely to be long-term rather than short-term. . .

One billion tree flawed says climate scientist :

The Forestry Minister Shane Jones’ one billion trees won’t reduce carbon emissions, as too few natives are being planted, climate scientist Jim Salinger says.

The government has allocated $120 million in grants to landowners to plant trees on their properties, and wants two-thirds of those planted to be natives.

Forestry New Zealand figures show in the first year, of the 91m trees planted, only 12 percent were native. . .

Falling log prices may make some woodlots unprofitable – ANZ -Rebecca Howard

(BusinessDesk) – In-market prices for logs in China – New Zealand’s largest export market – have fallen in recent weeks and ANZ Bank warns the drop will make the harvest of some woodlots unprofitable.

While some price softening is not unusual at this time of year as construction activity slows in the hot months, “the scale of the correction was unexpected,” said ANZ agriculture economist Susan Kilsby.

The price of an A-grade log landed in China has fallen from US$130/JAS cubic-metre in early June to approximately US$105/JAS cubic-metre.. .

Vet behind Mycoplasma Bovis detection hopeful for eradication:

The Ōamaru vet, whose efforts led to the identification of cattle disease Mycoplasma Bovis in New Zealand, says she is optimistic the disease can be eradicated.

Earlier this week, Dr Merlyn Hay was given the Outstanding Contribution to the Primary Industries Award, for her work to identify M Bovis in July 2017.

Dr Hay told Saturday Morning that the disease was very hard to diagnose, and in many other countries it was only detected after it had already been spreading for several decades . .

Group aims to help farmers improve M. Boris response – Daniel Birchfield:

Lines of communication between the Ministry for Primary Industries and farmers impacted by cattle disease Mycoplasma bovis have been muddied for too long, Waitaki Mayor Gary Kircher says.

Alongside Waimate Mayor Craig Rowley, he chaired the first meeting of the recently formed Waimate/Waitaki Mycoplasma Bovis Advisory Group held at the Waimate District Council on Wednesday.

The group, modelled on a similar Ashburton arrangement, was formed to support the ministry’s M. bovis eradication programme and assist with regional decision-making to benefit farmers. . .

Lamb contract rewards loyalty – Colin Williscroft:

A $9/kg fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says.

So, farmers generally should not raise their hopes it signals prices higher that they might usually expect as the season unfolds.

The contract has been the subject of much discussion at sale yards but Young said it is not an offer being made to every farmer.

It is only available to loyal clients, farmers who have shown Affco consistent support. . .

Dismantling free markets won’t solve biodiversity threat – Matt Ridley:

Driven perhaps by envy at the attention that climate change is getting, and ambition to set up a great new intergovernmental body that can fly scientists to mega-conferences, biologists have gone into overdrive on the subject of biodiversity this week.

They are right that there is a lot wrong with the world’s wildlife, that we can do much more to conserve, enhance and recover it, but much of the coverage in the media, and many of the pronouncements of Sir Bob Watson, chair of the Intergovernmental Panel on Biodiversity and Ecosystem Services (IPBES), are frankly weird.

The threat to biodiversity is not new, not necessarily accelerating, mostly not caused by economic growth or prosperity, nor by climate change, and won’t be reversed by retreating into organic self-sufficiency. Here’s a few gentle correctives.

Much of the human destruction of biodiversity happened a long time ago . . .


Rural round-up

May 8, 2018

The problem is not dirty dairying, it’s still dirty government – Not PC:

Environment Minister David Parker is all set to tell dairy farmers how many cows he’s going to be let them have on their own farms.  This is, he claims, to fix “dirty dairying.”

But turns out you neither need nor want central planning to fix the alleged problem. What you do need is property rights — and common law.

Here’s a repost from 2008 that’s sadly topical again, explaining what that means… . . 

Give farmers who are having a free ride on the Feds a rev up, says Manawatu leader – Jill Galloway:

Freeloading farmers are getting a free ride when Federated Farmers goes to bat for them on rural issues, says a Manawatū leader.

Manawatū/Rangitīkei Federated Farmers president Richard Morrison said the value of Federated Farmers was often queried and everyone was after a tangible return for every dollar they spent.

“I can see why they want to know how the money is spent … however consider the wins we at the federation have had. There has been a benefit for farmers and rural communities.”

He said some farmers who were not members were getting an easy free ride on others. “Talk to those people and see if they will join up,” he told about 50 members at the region’s Federated Farmers annual meeting. . . 

Farmers have stake in caring for water: Waikato mayor – Craig Rowley:

At the heart of the Waimate district is the rural sector – farming that contributes to both the local and national economies.

Farmers have and continue to work hard to reduce any negative impacts on the environment. The establishment of water zone committees is one example of this.

The Lower Waitaki South Coastal Canterbury Water Zone committee is made up of local people, including farmers, who have a wide range of interests in water – the source, the use and the benefits that come with good water management practices. . . 

Commodity prices good but problems possible – Simon Hartley:

Commodity prices in many of the country’s agriculture sectors are in a “sweet spot” at present, but Brexit, US-China relations and global trade talks could yet create headwinds.

The waning strength of the New Zealand dollar has been in the headlines for the past week.The kiwi has been down 5% against its United States counterpart in recent weeks and at one point fell below US70c, boosting commodity prices in New Zealand dollar terms.

Westpac senior economist Anne Boniface said, from a revenue perspective, the country’s agricultural sector was “in a bit of a sweet spot”,  although there was  the odd exception. . .

Emma Lewin wins Tararua Shepherd of the Year :

Four candidates — two men and two women competed for the title of Tararua Shepherd of the Year 2018.

At the Greenhill Station Field Day on Friday April 27 Emma Lewin was declared the winner.

According to judge Damian Reynolds of Totaranui Angus each was put through their paces in a rigorous two-hour assessment on the properties where they currently work.

This involved both practical skills such as stock handling and shearing as well as knowledge of the industry and operation of the farm they work on. . . 

Not an easy fit for agricultural drones in broadacre – Sharon O’Keefe:

THEY take pretty pictures and if you choreograph your headers correctly, your drone video may even trend on social media. 

However, precision agriculture specialists and researchers are questioning the utility of drones for broadacre agriculture. 

McGregor Gourlay, national digital agriculture manager, Brooke Sauer said while her company was a drone stockist, she felt as a general rule, drones were more useful for purposes other than broadacre precision agriculture.  . . 

Cumbrian farmer tracks down stolen pregnant sheep:

FOURTEEN stolen pregnant ewes have been safely returned to their Cumbrian farm thanks to a high-tech marking system.

Pip Simpson, whose farm is at Troutbeck near Windermere, has been a victim of previous livestock thefts.

He turned to a tracing system to help protect his flock from criminals targeting isolated farms across the county.

TecTracer, a forensic sheep tracing system developed by John Minary, a former senior police detective, and a Swedish ballistics expert ingrains coded markers into a sheep’s fleece,“marking” them with a unique identifying code which makes it easy to trace which farm the sheep originated from. . . 


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