Rural round-up

14/12/2018

Windsor Blue off to home of cheese– Simon Hartley:

Oamaru cheesemaker Whitestone Cheese has clinched an important export deal, having just delivered its first consignment of 100 rounds of Vintage Windsor Blue cheese to France.

Whitestone managing director Simon Berry said that to be shipping to Europe where cheesemaking was established showed that ”as new-world cheesemakers we’re coming of age”.

The first pallet-sized consignment, weighing about 250kg, was pre-sold to multiple customers and then delivered to France last month, with a follow-up order expected in the new year. . .

Grape, cheery growers competing for land – Guy Williams:

Wine and cherry growers are competing for land, resources and labour as both industries experience strong growth.

Mt Difficulty Wines co-owner James Dicey, of Bannockburn, said much of the planned investment in horticulture in Central Otago was expected to be in new cherry orchards.

That industry was undergoing a boom after several good years, with the total number of hectares planted in cherries poised to overtake grapes. . .

Farmers want DIRA gone – Annette Scott:

Farmers delivered a consistent message to the Ministry for Primary Industries when they met in Ashburton to consult on the Dairy Industry Restructuring Act review.

“We are a bit over it, and that’s an understatement,” Mid Canterbury dairying stalwart Ted Rollinson said.

His sentiment was largely echoed by all farmers at the meeting that unanimously agreed it’s time for open entry and exit to go, followed by raw milk regulations and access to regulated milk for Goodman Fielder. . . 

Approval given for Alliance to bring in workers – Alan Williams:

Meat processor Alliance has approval to bring in 100 workers from overseas for its Lorneville sheep plant in Invercargill.

They’re expected to be on hand for the peak February to May period, Alliance people and safety general manager Chris Selbie said.

“We’re delighted as it will make a real difference in addressing the staff shortages we had last season.

“We’ll start now to get on and find them.” . . .

Ahead with technology – Anne Hardie:

A cow chewing her cud has long been an indicator of cow health. Anne Hardie reports how monitoring collars can help show how a cow’s ruminations are affected by the state of their health.

Information from cow monitoring collars shows Adam McManaway and Kirsten Daymond the changes in ruminations and activity of every cow in their 465-cow herd so they know the state of their health long before an issue is picked up by eye.

Whether it’s calving, cycling, lameness, mastitis or anything that interrupts their usual grazing pattern, it will affect rumination and activity which is revealed on the computer graphs, or in acute situations prompt a notification from the phone app.

The couple are 50:50 sharemilkers 15 minutes north of Murchison in the Top of the South and were a demonstration farm for the Allflex Livestock Intelligence collars for the first couple of years. It was a convincing experiment for them and when it finished a year ago, they invested in collars for the entire herd which was a big financial commitment for a couple who had just taken on their first sharemilking contract. . . 

Local lingo keeps Uruguay pair on toes – Yvonne O’Hara:

Central Otago farmers have their own way of speaking, which makes it interesting for Uruguayan students Lorena Andiarena (21) and Ana Goncalvez (24).

Ms Andiarena comes from Salto and usually works on her parents’ 350ha beef property while studying to be a veterinarian. ‘

‘I have been all my life in agriculture,” she said. Ms Goncalvez is from Tacuarembo and had been studying farm management


Rural round-up

12/11/2018

Fonterra hopes for collaboration in review of regulating law – Jeremy Rees:

Fonterra has welcomed the review of the law which governs it and urged farmers and shareholders to work with the government to get it right.

At its annual meeting, Fonterra chairman John Monaghan told the 360 farmers in the audience that the Dairy Industry Restructuring Act (DIRA), which regulated the company was a complex piece of legislation but it was important to get any changes right.

“Let’s be clear. Fonterra’s performance, good or bad, is not driven by DIRA,” he said.

“But an updated DIRA can deliver our shared vision for the future of the New Zealand dairy industry.”

The government began in May a review of the Dairy Industry Restructuring Act 2001 which sets the parameters for Fonterra, the co-operative dairy giant. . . 

Fonterra is under attack from all sides, and now from within, as it grapples with issues that date back to 2001. These restraints allow its competitors to pick away at its good bits. China holds a tariff lever over NZ policymakers – Guy Trafford:

A busy week for Fonterra with the appointment of the two new directors and one still to come. Later today comes the result of the asset review instigated after the poor results from last season.

One of the new directors, Leonie Guiney has made her position plain in September she was quoted saying she wants the company to shift its whole strategy away from investments, like Beingmate and China Farms, which she says are “beyond our capability”.

If Fonterra thought they may get an easier path in the future through a revamp of the DIRA, the indications coming out are any thing to go by they are going to be disappointed. In fact, some are suggesting that the goal posts have been moved further away with a 70% mark as the point which is more likely to trigger a freeing up of some of the constraints the Coop is required to operate under. . .

New directorate to run M bovis programme – Annette Scott:

The new Mycoplasma bovis Response Directorate will provide a more robust model for the ongoing response to the cattle disease.

The directorate has been established after the decision by the Government and industry to try to eradicate M bovis and in consultation with Ministry for Primary Industries staff.

MPI response and readiness director Geoff Gwyn has been appointed to lead the new body.

Gwyn has headed the M bovis response since the cattle disease was found in July 2017. . . .

Swarmstorm design to benefit beekeepers:

Hobby beekeepers could have an alternative product to recollect swarms and maintain bee reproduction rates thanks to the work of Massey University industrial design student Liam Brankin.

The 22 year-old has devised a prototype backpack he calls the Swarmstorm that uses a suction hose, similar to a household vacuum cleaner, to suck and capture bees into a cardboard container before they are transferred to hives to continue the reproduction and honey-producing process.

His design is part of the Exposure graduate exhibition of final year work by design, art, creative media and music students from the College of Creative Arts, which opens at the Wellington campus on Friday.  . . .

Commission authorises extending restrictions on infant formula marketing ;

The Commerce Commission has authorised members of the Infant Nutrition Council Limited to extend the advertising and marketing restrictions in their Code of Practice to cover infant formula products for children aged up to 12 months of age.

Currently, the restrictions only apply to infant formula products for children aged up to six months of age. The INC asked the Commission to authorise the extended advertising and marketing restrictions, as the extended restrictions may lessen competition. . .

Nursery industry congratulate Young Hort 2018 runner-up:

Runner up Young Horticulturalist of the year, Devin Westley, is an extraordinary young man with a huge passion for his work as a nurseryman and innovator in the industry.

His employer, Southern Woods Nursery and the NZ Plant Producers’ Industry are delighted with his placing in the New Zealand Young Horticulturalist 2018 competition.

Devin also took home awards for best practice, practical activities and best speech on the night at the award’s dinner in Auckland last night. . . 


Rural round-up

04/11/2018

Farmers promoting safe stress-free workplace: – Sally Rae:

At Huntly Road Dairies, Duncan and Anne-Marie Wells have a philosophy when it comes to staff.

“They don’t work for us. We work with them. I think there’s a bit of a difference there,” Mr Wells explained.

And the Outram dairy farmer never expected any staff to do something on the farm that he had not done, or was not capable of doing. . . 

Farmers: DIRA past use-by date:

Farmers at the launch of public consultation on the Dairy Industry Restructuring Act review are united in their belief its days are numbered.

The act has achieved its purpose Otago farmers told Agriculture Minister Damien O’Connor who told them at the launch on Duncan and Anne-Marie Well’s Taieri farm the 2001 law had enabled the dairy industry to grow in volume, to innovate and for new companies to establish.

It is time for a review but that process has also been triggered by Fonterra’s share of South Island milk falling below 80%. . . 

Seeking a place to call home:

Making time for family and friends is important to a Waikato farming family. Fritha Tagg reports.

Farm facts
Owner: Piako Middle Farm
Sharemilkers: Olin and Anna Greenan
Location: Morrinsville, Waikato
Farm size: 214ha, two dairy sheds
Cows: 650 Friesian and crossbred
Production: Target 1100kg MS/ha
Farm working expenses: $1.90 . . 

New screen fish friendly, automated: – Yvonne O’Hara:

Fish no longer die and hours of labour have been saved each day after a new ”quantum leap” piece of equipment was installed as part of the Galloway Irrigation Company’s pumping system recently.

A new, specially adapted, self-cleaning, fish-friendly screen has been added to prevent fish and other debris from getting trapped. The water leaves the Manuherikia River, travels up a race, through the pumping infrastructure and then back to the river. . .

Giving up meat won’t save the cliamte – Frank M Mitloehner:

As the scale and impacts of climate change become increasingly alarming, meat is a popular target for action. Advocates urge the public to eat less meat to save the environment. Some activists have called for taxing meat to reduce consumption of it.

A key claim underlying these arguments holds that globally, meat production generates more greenhouse gases than the entire transportation sector. However, this claim is demonstrably wrong, as I will show. And its persistence has led to false assumptions about the linkage between meat and climate change. . . 

What’s happening in rural Aoteraroa-NZ?:

What’s happening on farms and orchards around Aotearoa New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

Te Ika-a-Māui-North Island

In Northland at least 30 millimetres fell and some lucky farms received between 50-70. It was really needed and may let some farmers shut up silage paddocks which they haven’t been able to do so far. Recently sown crops will germinate but follow up rain is required. The main cloud on the horizon is, with a lot of beef cattle in the region, the dropping schedule price and what will happen from now on. . . 

 


Rural round-up

03/11/2018

Fonterra fails test –  Hugh Stringleman:

Fonterra achieved a positive result in only one of its nine key performance indicators in the 2018 financial year, its Shareholders’ Council says.

That one positive was the milk price of $6.69/kg MS up 9% from the season before.

Negative achievements against targets were recorded for the total amount available for payout, earnings per share, consumer and food service volume, the gearing ratio, working capital days, return on capital, milk volume collected and employee injuries. . .

Law change could target farmers with poor environmental record – Maja Burry:

Farmers and other stakeholders are being asked to have their say on legislation governing the nearly $17 billion diary industry. 

In May, the government began a review of the Dairy Industry Restructuring Act (DIRA) 2001, which regulates Fonterra as the dominant player in the market to protect farmers, consumers and the wider economy.

The review will look at how the price of raw milk is set for farmers, how competitive the milk market is – as well as incentives for farmers to move into more sustainable production methods. . .

Fonterra acknowledges release of DIRA options paper:

Fonterra acknowledges the release today of the Government’s options paper on the review of the Dairy Industry Restructuring Act.

The Act is a complex piece of legislation and it’s important to New Zealand that the review is thorough.

We recognise the significant work that the Ministry for Primary Industries and Minister O’Connor have put into the document and we appreciate their high degree of engagement with industry so far. . . 

Not meeting honey rules cost Auckland businessman $26,000:

An Auckland businessman has been fined more than $26,000 for offences related to making false therapeutic claims about honey and failing to ensure he was a registered exporter.

Jonathan Paul Towers, 43, has been sentenced in the Auckland District Court and fined $26,300 after earlier pleading guilty to one charge under the Food Act and one charge under the Animal Products Act. . .

WIL locks in $11.5 M toward revised Dam cost:

To secure a 100-year water supply for Tasman and Nelson through the Waimea Community Dam, a group of local businesses has committed to invest $11 million in Waimea Irrigators Limited. Waimea Irrigators Limited (WIL) is issuing a Replacement Product Disclosure Statement (PDS) to shareholders today detailing its additional investment of $11.5 million in the $102 million Dam project.

In August it was announced that the cost of the project increased by $26 million. Subsequently, Tasman District Council (TDC) approved a revised funding proposal that included a greater WIL contribution. Through an investor vehicle and additional in loan funding from Crown Irrigation Investments Limited (CIIL), WIL can meet its commitment to the project. . . 

Bird Mask’ now available to buy

Off the back of some seriously positive chirping, Air New Zealand and material innovation brand Allbirds have made their collaboratively designed eye mask, dubbed the ‘Bird Mask’, available to purchase online and at selected Nordstrom stores in the United States. . .

From today, fans of the Bird Mask can purchase their very own mask through the Allbirds online store, the Air New Zealand Airpoints™ Storeand Air New Zealand merchandise store, and at Nordstrom stores in New York, Chicago, Los Angeles and San Francisco. . .


Not as ungreen as painted

28/08/2018

Mainstream and social media has had lots of stories about opposition to plans for a dairy farm at Simons Pass.

Neal Wallace provides some balance showing the plans aren’t as ungreen as they’re being painted:

. . . The Murray Valentine portrayed by critics of the dairy farm he is building on Simons Pass Station near Lake Pukaki is an uncaring, heartless capitalist, devoid of any ethics who plans to milk 15,000 cows on the most environmentally sensitive land in the South Island.

The Murray Valentine who occupies an orderly but busy office in Dunedin’s central city is genial, reserved, studied, methodical and who, true to his accountancy profession, makes decisions on fact not emotion.

He is not going to milk 15,000 cows on Simons Pass. . . 

Of the 800,000ha in the Upper Waitaki catchment, about 250,000ha is flat to rolling country that can be farmed. There is sufficient water allocated to irrigate about 25,000ha.

Valentine’s plans, which have never been a secret, are to irrigate 4500ha.

“Not many people who oppose me, I believe, have read the consent.”

Many of the people who oppose this and other similar plans tend to be driven by emotion not facts.

Valentine said critics demand he rip up his consents but that is not an option given the long, drawn-out process to secure them, dating back to soon after 2004 purchase of the property by his family trust.

He now has all the consents needed and started milking 800 cows this season.

That will progressively grow over seven years to about 5000 cows through three sheds.

Forty centre pivots will irrigate the 4500ha, of which about 1500ha will be the dairy platform. The rest will be dairy support, dairy-cross beef finishing and a halfbred sheep breeding unit.

Valentine said Simons Pass will be a closed unit worked in conjunction with a 2000-cow dairy farm he owns in North Otago.

He has made several significant and costly concessions including agreeing to control weeds and pests on 2500ha of ecologically-significant land he set aside for conservation as part of his irrigation consent.

The retired land dissects his farm in a large S shape and Valentine will protect it with 30km of rabbit fencing at a cost of $11.50 a metre.

That’s more than $300,000 of fencing alone.

A further 1300ha of land closest to Lake Pukaki was retired to the Crown under a tenure review agreement. . .

His consent requires annual monitoring of water quality at his boundary.

He intends doing it monthly to ensure he gets an accurate picture of the quality of water leaving the property and can respond quickly to any issues.

Technology measuring irrigation rates, soil moisture and the weather will help decision-making while drones will monitor the centre pivots and stock troughs.

Water for the small area of irrigation the previous owners and neighbour had consent for came from the Maryburn Stream but Valentine has invested $8 million in an 8km pipe delivering water from the Tekapo hydroelectric canal to his boundary, allowing the Maryburn consent to be retired.

“I believe I have shown enough responsibility on the conservation side. I am not shirking my responsibility.”  . . .

Many of those opposing the development paint the area as an unspoiled wilderness, but it’s not and one of the things spoiling it is hieracium.

The invasive weed hieracium is encroaching over much of the basin, killing tussock and causing soil loss through erosion.

Photos taken on Simons Pass in the 1970s showed tussock at hip height but 20 years later the weed has rendered the land barren.

“Most people would describe it as a desert.”

Cultivation and fertiliser in recent years have restored vegetative cover. . . 

Keeping invasive weeds at bay is costly in financial terms. Not doing it is expensive in environmental terms.

The Lindis Pass, which is not far from the Mackenzie, used to be covered in tussock. Year by year hieracium has taken over and hillsides which once waved with tussocks are now bare and erosion-prone.

If Fonterra wasn’t required to pick up milk from anyone who wants to be a supplier it’s possible that dairying in the Mackenzie wouldn’t be viable.

But unless, and until, the Dairy Industry Restructuring Act is changed to allow Fonterra to say no to would-be suppliers, the company has no choice about where suppliers farm.

Opposition to the plans has got personal, overlooking the fact that Valentine has spent six years and a considerable amount of money getting consents.

If those opposing the plans have grounds for their concerns they should be aiming at the consenting authorities and process, not the man.


Rural round-up

15/08/2018

Appeal decision a win for irrigators but more work needs to be done:

An appeal to Environment Canterbury’s Plan Change 5 nutrient modelling rules has been resolved with a major win achieved for irrigators, says IrrigationNZ.

A Hearings Panel on the Plan Change proposed a new requirement that would have effectively required that all older spray irrigation systems in Canterbury be replaced with new ones by 2020. It was estimated that this change would cost irrigators $300 million.

All parties to the appeal agreed that an error in law had been made when the Hearing Panel introduced this as a new requirement because no submitter had asked for this change.

INZ carried out testing on 300 irrigation systems in Ashburton and Selwyn districts over two summers recently which found that older spray irrigation systems can achieve good levels of water efficiency if regular checking and maintenance is carried out

First M bovis case confirmed near Motueka in Tasman – Sara Meij:

The first case of M. Bovis has been confirmed in the Nelson region.

Biosecurity New Zealand said on Tuesday a property near Motueka, in the Tasman district, had tested positive for the bacterial cattle disease.

Ministry of Primary Industries (MPI) said the affected property was a mixed sheep and beef farm.

The farm was identified through tracing animals from known infected farms and it was now under a Restricted Place Notice, which meant it was in “quarantine lockdown”, restricting the movement of animals and other “risk goods” on and off the farm. . .

At the grassroots: farmers contribute too – John Barrow:

I recently returned a little disappointed from the Local Government New Zealand conference in Christchurch.

From a dairy farmer’s perspective I was disappointed at the lack of recognition of the cost of farming and issues we are facing – all the emphasis was on urban.

The conference theme was We are Firmly Focused on the Future: Future Proofing for a Prosperous and Vibrant NZ. . .

Draft report on review of Fonterra’s 2017/18 base milk price calculation:

The Commerce Commission has today released its draft report on Fonterra’s base milk price calculation for the 2017/18 dairy season.

The base milk price is the average price that Fonterra pays farmers for raw milk, which was set at $6.75 per kilogram of milk solids for the season just ended.

The report does not cover the forecast 2018/19 price of $7.00 that Fonterra announced in July.

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

Four does go into one – Sonita Chandar:

Teamwork is the secret to success for the Southland farm judged the best dairy business in the land. Sonita Chandar reports.

Despite three of the four partners living in the North Island the success of a Southland farming business can be attributed to exceptional teamwork and good clear lines of communication.

Each partner brings strengths to the table but no one is above the others. They are all equals, make decisions as a group and share in the spoils of their collective success.

MOBH Farm, an equity partnership made up of Kevin Hall, Tim Montgomerie, Jodie Heaps and Mark Turnwald, won two category awards as well as being named the supreme winner at the 2018 Dairy Business of the Year awards (DBOY). . .

Farmers rally around Cancer Society fundraiser at Feilding Hogget Fair – Paul Mitchell:

The rural community is banding together to get behind the Cancer Society, with personal connections running as deep as their pockets.

The annual Hogget Fair at the Feilding Stockyards on Wednesday is one of the biggest in New Zealand. For the second year running, farmers will donate sheep to help those who are doing it tough.

The money raised from selling the sheep will go directly to supporting Manawatū-Whanganui cancer patients. . .

Rare heifer triplets thriving on Taieri farm – Sally Rae:

Holy cow – it’s a girl. Or in the case of a heifer calving on a Taieri dairy farm last week, it was a gaggle of girls, handful of heifers.

The first-calver produced a very rare set of heifer triplets on the Miller family’s farm at Maungatua. Andrew Miller and his father Jim had never encountered triplet calves before.

Andrew was particularly amazed the Kiwi-cross calves had all survived and were now doing well in the calf shed. . .

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Business not Minister’s business

14/06/2018

NZ First MP Shane Jones has stomped with his clod hoppers where he has no business to be again:

Regional Development Minister Shane Jones has climbed into the leadership of dairy giant Fonterra, calling for chairman John Wilson to follow chief executive Theo Spierings out the door.

Jones said he told the company it should stop being political and instead focus on its business.

Says the Minister who uses personal attacks instead of polite discourse and ought to be focusing on politics not meddling in business.

They should focus less on interfering in politics and more on justifying the money they’ve lost overseas. I believe that they have become disconnected from the farming community.”

Jones said he had suggested to Agriculture Minister Damien O’Connor whether it was time to restructure the dairy co-op, and singled out Wilson for special mention.

Doesn’t he know that the Dairy Industry Restructuring Act (DIRA), under which Fonterra was created, is under review already?

The leadership of Fonterra, I believe, starting with the chairman, is full of its own importance and has become disconnected.”

He said there was an absolute absence of accountability for the “enormous amounts of dough” that the current chairman had presided over.

This sounds very like a minister full of his own importance presiding over a billion dollar slush fund with little accountability.

The CEO has gone, well that’s only one party of the double-Dutch we’ve had to put up with in Fonterra over the last nine years. I thoroughly believe this … that as the CEO leaves Fonterra, the chairman should in quick order catch the next cab out of town.

Double-Dutch? Is this a xenophobic reference to the retiring CEO Theo Spierings and past chair Sir Henry van der Heyden who stepped down nearly a decade ago?

“I’ve been bloody disappointed that Fonterra, in my view, the leadership has not accepted that there’s a new Government and there is a new narrative and I’ve had a gutsful of them believing they are bigger then what they really are.” . .

Believing they’re bigger than they are? That’s rich coming from the party with far more power – and voter money – than its voter support at the election entitle it to.

This sort of tirade does nothing to reassure  businesses which are already very wary of the policies and directions of the government.:

The time has come for the Prime Minister to step in and discipline her Regional Economic Development Minister who repeatedly seeks publicity by attacking business leaders, National’s Regional Economic Development spokesperson Paul Goldsmith said today.

“Business confidence in New Zealand is plummeting and the reasons for that are mounting.

“The Government’s low growth policies like higher taxes and stronger unions are causing businesses to hire fewer people and invest less in growth and it has them concerned about the future of New Zealand and who can blame them?

“Because on top of that you have a loudmouth Regional Economic Development Minister who’s putting his own ego and need for publicity ahead of the interests of New Zealand.

“Shane Jones’ attacks on Fonterra’s leadership are the latest burp from a man who is fast losing any respect he once had.

“He says Fonterra’s leadership is ‘full of their own importance’.  That sounds like a more apt description of himself.

“He even added he’s ‘worried about the absolute absence of accountability for the enormous amounts of dough that the current Fonterrra chairman has presided over’.

“This is startling hypocrisy from the same man who defended his own region getting the lion’s share of funding from his billion-dollar Provincial Growth Fund by stating ‘to the winner goes the booty’.

“Well it’s not his booty and it’s clear Shane Jones has no idea what accountability means.

“This Government has decided to spend $3 billion over the next three years on regional economic development, including roundabouts and church restorations. It’s critical the responsible is up to the job and focused on doing his job well.

“At the moment, all he seems good for is attacking business leaders whenever a few days have gone by without some of the media coverage for which he craves.

A friend who was at the KPMG breakfast at which Jones launched his tirade said it was entirely inappropriate, and a very poor reflection on the MP and the government.

Fonterra is a co-operative. The performance of the company and its chair are the business of its shareholders not an MP.

There is some dissatisfaction and there are concerns but this season’s  milk price is the third highest since the company was formed.

Shareholders could well be more concerned about the MP who has no business interfering in their business than the chair’s performance.

So Jones’s loose lips could well strengthen the position of Wilson who is up for re-election this year.


Rural round-up

13/05/2018

Farming programme empowers Maori women in Northland – Bayley Moor:

A programme aimed at upskilling and empowering Māori women in the farming industry has seen its first cohort from Northland graduate.

Graduates from across Tai Tokerau with backgrounds as private farmers, trustees on Māori land and working in the dairy and beef industries were presented with their certificate after completing the Agri-Women’s Development Trust’s Wāhine Māia, Wāhine Whenua programme. 

Wāhine Māia, Wāhine Whenua is an intensive programme providing participants with skills from industry experts including measuring farm performance and potential, business planning, finding and accessing financial information – all condensed down into three, full-day workshops, to make it more accessible for time-poor women.  . .

DIRA distorts Fonterra decisions – Hugh Stringleman:

The review of the Dairy Industry Restructuring Act is well overdue considering the degree of added competition recently, which has implications for the open entry rule, Fonterra says.

“The industry has become highly competitive with a relatively large number of new entrants often backed by deep capital and global businesses,” it said.

“Open entry limits our farmer-shareholders’ and the industry’s ability to maximise value.

“It distorts investment decisions and leaves Fonterra’s farmers underwriting risk for competitors, who cherry-pick their suppliers.” . . 

Farmers want rules for agents – Nigel Stirling:

Mulitple lawsuits being brought by farmers against a South Island livestock firm looks like being the catalyst for regulation of the industry.

Five civil claims against Rural Livestock and a Serious Fraud Office investigation into a former employee of the Christchurch firm have prompted Federated Farmers to call for livestock agents to be licensed in a similar manner to their counterparts in the real estate industry. . . 

Scoring carbon emissions – Brian Easton:

A powerful social law suggests we often explain or do things the wrong way. This may be particularly true when we try to address Global Warming.

Gilling’s Law, one of the most powerful laws in the social sciences, states that the way you score the game shapes the way it is played.* A simple example is that once rugby was boring with a typical score of 9 to 6 – three penalties to two. Later the score for a try was raised from three points to five, bonuses were given for scoring a lot of tries (and also to a loser who gets close to the winner). The changed incentives led teams to take risks to score tries with the result of much bigger scores and a livelier game. . . 

Low cattle pressure, yet an environmental problem in New Zealand – Robert Bodde:

Mark and Pennie Saunders are milking 2,000 dairy cows on the New Zealand South Island. Due to the scale, the cost price is lower than average despite the solid financing. The entrepreneurs see availability of labor and environmental measures as the biggest threats.

Their cows and young cattle older than two months walk 24 hours a day, 365 days a year in the meadow. Mark and Pennie Saunders have therefore invested little in buildings. At the home location in Ashburton, 90 kilometers south of Christchurch, there are three pilots, one of which is out of use. One is for the housing of sober calves, and one contains some tractors and machines. The 4 tractors from 45 to 120 hp are 20 to 45 years old. They are, according to Mark, not worth more than € 165,000, including the tools.

The 80-stall rotary milking parlor, an outdoor fancier from 2004, has also been depreciated. In the first years, 1,200 cows went through twice a day. After an increase in business in 2007, 1,650 per day, 10 months per year. Since 2015, there are only ‘1,450’. That year they bought 130 hectares of the neighbor and they started a new location with 600 dairy cows on a 54-stall rotary milking parlor. “The decision to start at the second location was prompted by the scarcity of capable people”, says Mark. “It is certainly financially more attractive to milk for longer in the 80 stands. But with 1,650 cows, the employees were milking for nine hours a day. Then you will not keep your people. You can only bind them to you if they have varied work. ” . . .

(This was translated from Dutch, as internet translations do, it doesn’t get every word right).

Texas ranches manage cattle to improve pasture and watershed health – Sandra Postal:

The following is an edited excerpt from Replenish: The Virtuous Cycle of Water and Prosperity by Sandra Postel, published by Island Press.

Few animals get as bad a rap these days as cattle do. They are blamed for soil erosion, water depletion, overgrazed rangelands, greenhouse gas emissions, and, when eaten, human heart disease. Often missing from such indictments of the mooing, tail-wagging, and, yes, methane-emitting bovine, however, is our role. How we choose to manage cattle determines their environmental impact, not the animals themselves.

“Ninety percent of people think cattle are bad,” said Robert Potts, president of the Texas-based Dixon Water Foundation. “But grasslands need well-managed grazing to stay healthy. We need to educate people about that.” . . 


Rural round-up

15/08/2017

Labour’s water plan ‘dangerous, deceitful’, says Marlborough grapegrower – Oliver Lewis:

A Marlborough grapegrower has blasted Labour’s irrigation policy as “dangerous” and “deceitful”.

Wine Marlborough deputy chairman Simon Bishell said it was populist electioneering that would “drive a deeper wedge between the rural and urban divide”.

The Caythorpe Family Estate grower said international wine markets were incredibly competitive and any extra charge would put New Zealand exporters at a disadvantage. . . 

Concern for Hawke’s Bay farmers, growers over “water tax” – Victoria White:

Concerned members of Hawke’s Bay primary sector have waded into the debate on a Labour Party proposal for a royalty on commercial water.

Yesterday Labour leader Jacinda Ardern revealed their freshwater policy, which included charging an unspecified royalty on commercial water, with the revenue going to local regional councils to be used to clean up rivers, lakes and streams.

This royalty would include water bottlers, and farmers taking water for irrigation schemes. . . 

Horticulture New Zealand Responds to Scaremongering Claims:

Reacting to claims yesterday from Labour’s water tax spokesperson David Parker that its level of “scaremongering around this would make Donald Trump blush”, Horticulture New Zealand chief executive Mike Chapman says this is a disappointing way to start a policy discussion about water and land use.

“Since Labour announced last week that it planned to tax fruit and vegetable growers’ use of water, I have been contacted by many of our growers asking that Horticulture New Zealand speak out about this tax and its direct impact on the cost of healthy food,” Chapman says.

“The tax confuses water users with water polluters – they are not one and the same – and implies that people on municipal water supply already pay for water, when in fact nobody pays for water. The costs they are talking about relate to the infrastructure required to source water. . .  

Positive perception important to farmers – Sally Rae:

Dean Rabbidge is an advocate for telling the good stories in farming.

Mr Rabbidge (32), a Glenham sheep, beef and dairy farmer, is intent on not only growing his own farming business, but also defending what he views as a “bad rap” that farming receives from some.

He recently became a trustee and member of the Three Rivers Catchment Group, which was established to engage with all sectors of the community and educate around the management of fresh water.

The group comprised about 12 trustees, who were all farmers and who wanted to engage with the community around water quality issues. The catalyst for its formation was Environment Southland’s proposed Water and Land Plan.

Mr Rabbidge encouraged people to “do the right thing” and showcase best management practice. He wanted to “get some good noise” out there with all the good stuff that was happening, he said. . . 

Understanding meat behind marketing – Sally Rae:

When it comes to marketing meat, Wayne Cameron is in the enviable position of having experienced first-hand all aspects of the chain — from producer to restaurateur.

Mr Cameron has been heavily involved with the Silere alpine origin merino meat brand  established six years ago.

Originally a joint venture between the New Zealand Merino Company and Silver Fern Farms,  SFF later withdrew from the venture and Alliance Group took it up.

Mr Cameron’s latest role is as marketing manager premium products at Alliance Group, overseeing not only Silere but also Te Mana lamb, and other yet-to-be launched products, including a beef label due to be rolled out soon. . . 

NZ sheep numbers decline at a slower annual pace as farmers rebuild flocks –  Tina Morrison:

 (BusinessDesk) – The steady decline in New Zealand’s sheep numbers continued at a slower pace over the past year as farmers in some areas rebuilt their flocks following drought, natural disasters and the impact of facial eczema.

Sheep numbers reduced to an estimated 27.34 million as at June 30 from 27.58 million a year earlier, according to the latest survey from the Economic Service of farmer-owned industry organisation Beef + Lamb New Zealand. The annual 0.9 percent decline compares with last year’s 5.3 percent drop, and marks the fifth consecutive fall since 2012 when sheep numbers rose 0.4 percent. . . 

Farmers taking a hammering with One Plan, gorge closure :

“We won’t survive,” was Tararua District mayor Tracey Collis’ reaction to the Environment Court directed One Plan presented to Horizons Regional Council’s strategy and policy committee yesterday.

“The report is really scary,” Mrs Collis, an Eketahuna dairy farmer, said.

“We’ve seen the damage a loss of 30 per cent of business has meant to Woodville, with the close of State Highway 3 through the Manawatu Gorge. A drop in dairy farmer’s profit will be felt throughout our community,” she said. . . 

Otematata wetland project gets funding boost – Elena McPhee:

Volunteers are fencing, clearing willows, and planting 2200 native plants before spring for a wetlands restoration project at the head of Lake Aviemore. 

Another $15,000 has been granted for the conservation project as part of an ongoing Environment Canterbury initiative to fund biodiversity projects around the district. 

The Otematata Ratepayers Association received the grant from the Upper Waitaki Water Zone Committee to enhance another section of the 50 hectare Otematata Wetlands at the head of Lake Aviemore. 

The wetlands site is a popular recreation area, and is being restored by the community-led group.  . . 

Draft Report on Fonterra’s Base Milk Price Calculation:

The Commerce Commission has today released its draft report on Fonterra’s base milk price calculation for the 2016/17 dairy season.

The base milk price is the price Fonterra pays farmers for raw milk, which is set at $6.15 per kilogram of milk solids for the 2016/17 season just ended. The report does not cover the forecast 2017/18 price of $6.75 that Fonterra announced in July.

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

Commission Deputy Chair Sue Begg said with the exception of the asset beta component of the cost of capital estimate, Fonterra’s calculation of the 2016/17 base milk price is consistent with both the efficiency and contestability purposes of DIRA. . . 

Teacher resources bring primary industries into the classroom:

A new set of online resources will provide teachers with the information they need to help their students learn about New Zealand’s animal welfare, biosecurity and food systems, says Associate Minister for Primary Industries Louise Upston.

“The curriculum-linked resources are being rolled out so that teachers can help students to learn key knowledge and skills while also discovering how these key systems underpin the primary industries and play an important role in our economy, our environment and our way of life,” Ms Upston says. . . 

First female president of Agcarm:

Agcarm, the industry association which represents crop protection, animal health and rural supplier businesses, has appointed its first female president.

Dr Pauline Calvert heads the production animal business for MSD Animal Heath in New Zealand and was elected president at Agcarm’s annual meeting on July 27.

Under her presidency, Agcarm will continue to focus on promoting the responsible use of products, sustainable agriculture, environmental preservation, and sensible science-based regulation of crop protection and animal health products. . . 

Interesting Facts And Figures About The 2017 Bayer Young Viticulturist of the Year National Final:

With the Bayer Young Viticulturist of the Year 2017 National Final looming closer (29th August 2017 at Villa Maria) the contestants are well into study mode, researching their projects, writing budgets, revising a wide range of subjects such as pests & diseases, soil nutrition, pruning, trellising and tractor skills to name but a few. Each of them is very determined to be this year’s winner.

Here are some interesting facts about the competition:

• 2017 will be the largest national final to date with SIX contestants . . 


Rural round-up

25/10/2016

Golden harvest from Fiordland farm – Sally Rae:

Growing saffron and Fiordland might sound an unlikely combination.

But Te Anau couple Steve and Jo Daley have big plans for their fledgling organic operation with an ambitious goal of becoming world-renowned for the costly spice.

“It’s just so damn exciting, the product, and people are so interested in what we’re doing,” Mr Daley said.

Mr and Mrs Daley have 1.5million crocus corms on their property and their intention is to  increase that  to 50million, which would make them the biggest saffron producers in New Zealand.

With a day job as a fencing contractor, Mr Daley, while stationed behind the post driver, got thinking about other ways to make a living.  . . 

Sand and milk: Dairy farming in the desert – Sally Rae:

For Clayton Buckley, the past 12 years working for Almarai — the world’s largest vertically integrated dairy company — have been quite an experience.

Suffice to say, it was ‘‘not like farming here’’, he said during a recent visit home. 

Mr Buckley (35) was brought up in North Canterbury, where his father Russ was a ‘‘part-time’’ deer farmer.

He used to head south during school holidays to stay with his aunt and uncle Gail and Trevor Meikle and help on their farm, near Oamaru.

He enjoyed it so much that when he was about nine, he announced to his parents he was going to buy Mr and Mrs Meikle’s farm, he recalled. . . 

Quad bike deaths at record high – Catherine Hutton:

The number of deaths from quad bike accidents has reached a record annual high of 14, and an agriculture expert says the rate is predicted to rise.

A quad bike accident in Taupō on Saturday night left one person dead and another with moderate injuries, bringing the number of deaths from quad bikes this year to 14, a record for a single year.

The former director of Lincoln University’s Telford campus, Charley Lamb, said the deaths were occurring as a result of crush injuries, which research showed roll bars would prevent.

“Very few bikes have roll over protection, which of course they should do. Whether people want to debate that and argue that, they can. But they used to do the same about safety frames on tractors and they did the same about seatbelts in cars.” . . 

DIRA changes don’t go far enough – Neal Wallace:

Fonterra has criticised proposed changes to the Dairy Industry Restructuring Act as not going far enough because they continue to impose constraints on the co-operative that help its competitors.  

The proposed changes to DIRA announced by Primary Industries Minister Nathan Guy provided a mixed bag for Fonterra which its Farm Source chief operating officer Miles Hurrell labelled a “lost opportunity to address artificial constraints”.  

While an end was in sight for the requirement to sell milk to its largest competitors, Hurrell said Fonterra was still obligated to accept and process all milk produced which meant shareholders having to invest in stainless steel. . . 

Age ousts three directors – Sally Rae:

Three directors, including founder and chairman Graham Cooney, have stepped down from the board of Blue Sky Meats due to an age-related clause in the company’s constitution.

A letter sent to suppliers of the Southland-based meat company this week, signed by chairman Scott O’Donnell and directors Peter Carnahan and Andy Lowe, said Mr Cooney, Peter Houlker and Malcolm McMillan were unable to continue as the constitution precluded any individual from being a director once they reached 65. . . 

Don’t blame staff – Annette Scott:

Agri businesses are bad at attracting the right staff rather than being victims of a shortage of skilled and experienced people, Synlait Milk chief executive John Penno says.  

“Effectively, I’m saying our primary industry business models are not strong enough to compete for the right people.  

“We need leaders growing up in our businesses and we need businesses growing these leaders.”  Penno focused on the challenges of knowledge and skills for land-based industries towards 2030, in a presentation to an Agricultural and Horticultural Science Institute forum.  

“This really made me think,” Penno said. . . 

A changing of the guard for DWN:

Dairy Women’s Network has a new skipper at the helm after today’s AGM, with incumbent chair Justine Kidd stepping down and Cathy Brown of Pahoia being warmly welcomed into the role.

A crowd of about 60 DWN members, staff and sponsors gathered at Wintec in Hamilton today to celebrate another successful year for the 9000-strong not-for-profit organisation that is dedicated to supporting and inspiring women to succeed in the business of dairying.

Brown has been involved with DWN since the late 90s, first hearing about the organisation when she worked at CRV Ambreed. She quickly became a member of what was at that point a largely internet based network and attended the organisation’s first conference in 2001. . . 


Cathy Brown (left) with Justine Kidd.

‘Good dog’ makes dog training easier – Anna Holland:

Two words I find invaluable when training dogs are “good dog”.

The secret to their effectiveness is understanding, timing and correct usage; overuse them and their power is lost.

Not only do you need to understand when and how to use “good dog”, but the dog needs to understand the meaning. I once commented to someone, “You never say ‘good dog’.” And the next thing he was like a stuck record with the words; the trouble is he may as well have been speaking a foreign language because the words had no meaning for his dogs. . . 


DIRA improvements

25/10/2016

Primary Industries Minister Nathan Guy has announced changes to the  Dairy Industry Restructuring Act 2001 (DIRA):

“When Fonterra was formed as the dominant market player, DIRA was established to ensure an efficient and innovative dairy industry to promote the long-term interests of farmers and consumers,” says Mr Guy.

“A report from the Commerce Commission earlier this year found that competition is not yet sufficient to warrant deregulation at this point. Once sufficient competition is in place, competitive pressure, rather than the DIRA regulatory provisions, should drive the efficiency of New Zealand dairy markets. Competition helps keep businesses efficient, giving individual dairy farmers more options and choice.

“Around 100 submissions were received on the Government’s subsequent proposals to amend DIRA. These were split between those who wanted further deregulation of Fonterra and those who said Fonterra was still in a dominant position.

“Having considered these submissions, the Government has now agreed to a number of changes to the DIRA regulatory regime.”

The changes are:

  • Prevent the efficiency and contestability provisions of the DIRA from expiring in the South Island, and require that the next review of the state of competition in the New Zealand dairy industry commence during the 2020/21 dairy season (20 years since DIRA began).
  • Enable ongoing monitoring of dairy markets.
  • Allow Fonterra discretion to accept applications to become shareholders from new dairy conversions from 2018/19.
  • Alter who is eligible for regulated milk from Fonterra, and the terms that it is available on. Specifically:
  • Fonterra will no longer be required to sell regulated milk to large, export-focused processors from the start of the 2019/20 season.
  • All processors purchasing regulated milk will have reduced flexibility in forecasting the volume of regulated milk they intend to purchase from Fonterra from the start of the 2018/19 season.

“Consultation provided new information about risks of some of the originally proposed changes to regulated milk – particularly for downstream markets and consumers. The Government is therefore deferring the consideration of those potential changes to regulated milk for Goodman Fielder and small or domestically focused processors.

“Officials will start a body of work to understand the complexities in this area and any outcomes will inform the next review.

“The next review will commence by the 2020/21 season – 20 years since DIRA was created. The scope of this review will be wider than just competition policy to take into account any impacts from the work on downstream milk markets,” says Mr Guy.

An Amendment Bill is likely to be considered by the Primary Production Select Committee in early 2017. The Select Committee process will provide further opportunity for public input. Changes to the Raw Milk Regulations will be made via Order in Council. . . 

The wrong question on business formation has been asked if government legislation is the answer.

However, the legislation was passed 15 years ago and the change to allow Fonterra to turn down applications from new suppliers is a welcome one.

The requirement to accept all applications from new suppliers has forced the company to pick up milk from farms in far-flung places. Without that requirement many of these farms would not have converted which would have been better for the company and possibly the environment.

This requirement has also forced the company to over-invest in processing.

No longer requiring Fonterra to supply the larger exporters which are its competitors will be better for it without harming them as they are well able to get alternative supplies.


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. . . 


Feedback sought on DIRA changes

30/05/2016

Minister for Primary Industries, Nathan Guy, is seeking feedback on options to amend the Dairy Industry Restructuring Act 2001 (DIRA) and its regulations.

The document is in response to the Commerce Commission’s report on the state of competition in the New Zealand dairy industry, which was released on 1 March 2016. By law the Minister is required to respond to this report within 90 days of receiving it. . . 

Among suggested changes are:

• Amending the Dairy Industry Restructuring Act (Raw Milk) Regulations 2012 so that Fonterra no longer needs to sell milk at a regulated price to large, export-focused processors, and the volumes of regulated milk available to all other processors are gradually reduced.

At the moment, Fonterra is required to sell to competitors at a regulated price, even though they are big enough to stand on their own feet.

• Amending the open entry provisions so that Fonterra no longer has to collect milk from new dairy conversions. . . 

This requirement has forced Fonterra to direct investment to more processing when it’s not necessarily the best way to maximise returns for farmers.

It also led to dairy conversions in places where no-one would have contemplated dairying. It has imposed greater costs on Fonterra which has no choice but to collect the milk and some also argue it’s led to farms converted in areas where the environment isn’t suited to dairying.

If legislation is the answer to business success then it’s almost always because the wrong question has been asked.

We can’t turn back the clock. Fonterra was formed and the DIRA passed to ensure it didn’t have an unfair advantage.

However, the clause requiring Fonterra to sell milk at a regulated price to its competitors is no longer needed and requiring it to pick up all milk it’s offered has proven to be a mistake.

 

 


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. . . 

 


DIRA’s had its day

14/08/2015

Some good news on dairying:

Primary Industries Minister Nathan Guy today certified that in the 2014/15 season independent dairy processors collected 22 percent of all milksolids in the South Island.

Under the Dairy Industry Restructuring Act (DIRA), the Minister is required to certify when this threshold is reached. It triggers expiry of the pro-competition DIRA provisions in the South Island by no later than 31 May 2018, unless there is legislative change before then.

“While Fonterra continues to collect more milk every season, it is encouraging to see new processors enter the market and create competitive pressure,” says Mr Guy. 

“Independent processors also collected 9 percent of all milksolids in the North Island. This indicates there is increasing competition in the New Zealand dairy industry.”

Monitoring of the amount collected by independent processors is required under DIRA, which allowed for the merger of our largest dairy co-operatives to form Fonterra Co-operative Group Limited in 2001.

DIRA also contains provisions to promote the efficient operation of dairy markets in New Zealand through contestability in the farm gate and factory gate markets. These provisions are intended to expire when there is sufficient competition. 

“While the percentage of milksolids collected by independent processors is one indicator of competition, it is not definitive. For this reason the Commerce Commission has been tasked with providing a report on the state of competition in the New Zealand dairy industry.

“The Commerce Commission’s report, as well as policy advice from the Ministry for Primary Industries, will help to inform my decisions as Minister and will inform the Government as it considers the results of this review.

“The Government will need to consider next year whether to promote changes to legislation to extend the duration of the pro-competition provisions, or provide a transition pathway to deregulation, or a combination of both.” . .

Information about the process, including the terms of reference for the report, key dates, and how submissions can be made, are available on the Commerce Commission website: http://www.comcom.govt.nz/regulated-industries/dairy-industry/report-on-the-state-of-competition-in-the-new-zealand-dairy-industry/

The final report is due on 29 February 2016 to the Ministers of Primary Industries and Commerce and Consumer Affairs. The Government will respond shortly thereafter by giving public notice of the Government’s policy intent.

The sooner these provisions in the DIRA go the better for Fonterra and the industry.

Under the provisions farmers can sell their shares, supply another company then go back to Fonterra which has to take them back.

DIRA has also encouraged dairying in distant areas which might not have happened had Fonterra not had to take the milk produced.

It’s had its day and competition is alive and well in the industry, at least in part not in spite of Fonterra but because of it.

No matter what the hurdles someone will see an opportunity and seize it.

Bit isn’t always better as suppliers to Tatua which is forecasting a $6 payout this season know.

Those wanting the meat industry to follow the Fonterra model should take note that the market will find a way even with legislation.

They should also note that if legislation is the answer to a business’s formation or growth you’ve almost certainly asked the wrong question.


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). . .