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

June 6, 2019

Making the most of beef and lamb – Daniel Birchfield:

Inspiration and collaboration are what Oamaru’s Pablo Tacchini is enjoying most about being a Beef + Lamb NZ ambassador chef.

That was on show at his restaurant, Cucina, as part of the 2019 Beef + Lamb NZ ambassador series on National Lamb Day last Friday.

Mr Tacchini and platinum ambassador chef Michael Coughlin, of Dunedin, created a six-course menu for more than 60 guests that focused on fine New Zealand cuts. . .

Oamaru man with 60 years’ experience in market gardens receives Queen’s Birthday Honour – Joanne Holden:

An Oamaru man who has helped the growth of several key organisations in the district has been recognised in the Queen’s Birthday Honours List.

Peter Lee, 82, has been awarded the Queen’s Service Medal for dedicating more than 60 years to horticulture and the Chinese community.

The honour was “humbling” for Lee as he considered his dedication to the groups he is involved in as “just part of being in the community”.

“I’m quite humbled,” he said. . . 

AgResearch project to determine whether dairy cows can be potty trained – Gerald Piddock:

Potty training Daisy the cow and the rest of New Zealand’s 4.99 million-strong dairy herd may seem fanciful, but that is exactly what AgResearch scientists are attempting in a new study.

While it is still at the experimental stage, if successful it could significantly reduce nitrogen loss on farms because it would help farmers better capture cow effluent before it made its way into waterways. It would improve hygiene in dairy sheds and give farmers greater control over where effluent is applied on pasture. . . 

M Bovis: 129 farms cleared of cattle disease, 43 ‘actively infected’ – MPI:

More than 100,000 cattle have now been culled as part of the government’s Mycoplasma bovis eradication programme.

Figures released by the Ministry for Primary Industries also showed 171 properties had been confirmed as having the cattle disease.

Mycoplasma bovis can cause lameness, mastitis and abortions in cows and was first detected in New Zealand by the ministry in 2017.

In a stakeholder update, the ministry said of the 171 farms found to have the disease, 129 had now been cleared of cattle and declared safe to repopulate. . . 

Alliance Group invests in Dannevirke and creates 35 regional jobs:

Alliance Group is investing a further $1.4 million in improvements to its Dannevirke plant as it seeks greater efficiencies in processing. 

The 100 percent farmer-owned co-operative is re-configuring processing operations and investing in additional technology at the plant in southern Hawke’s Bay, bringing total investment at Dannevirke to $12 million in the past year.

The improvements to the plant’s lamb and sheep processing capabilities will increase the plant’s capacity by 20 percent. The company will re-configure product flows, install additional vacuum-packaging capacity and introduce additional downstream labelling and strapping equipment. . . 

A tax on red meat? That won’t save the planet – or do much to improve our health – Julian Baggini:

The devil is a shape-shifter, not least when he takes the form of demonic foods. In response, the armies of the righteous have already waged war on sugar, and now red meat is in their sights. This time their cause seems doubly just. Red meat, we are told, is not only bad for our health, but the belching and farting ruminants that we farm are ruinous for the planet.

Emboldened by the apparent success of the sugary drinks tax, the weapon of choice to slay this monster is a similar levy on meat. Oxford University’s professor of population health, Mike Rayner, has even done the maths, and concludes that we need to tax red meat by 20% and processed meat by at least 100% to offset their costs to human health.

On the face of it, the meat tax looks like an appetising idea. But once you start putting some flesh on its bare bones it starts to look less savoury. I’ve become even more convinced about this after taking part as a juror in a Food Policy on Trial event hosted by the Food Ethics Council, of which I am a member. This intensive, exploratory half-day exercise heard from four experts, with questions from jurors and an audience made up mostly of food industry and policy experts. . .


Rural round-up

April 27, 2018

Direct link between irrigation and polluted waterways is ‘wrong’ says mayor – Jo McKenzie McLean:

Wide opinion that an “incontrovertible” direct link exists between irrigation and the degradation of New Zealand’s waterways “is wrong”, Central Otago Mayor Tim Cadogan says.

Cadogan delivered an opening speech at Irrigation New Zealand’s national conference being held in Alexandra, Central Otago, on Wednesday and Thursday. 

He told a crowd of over 400 that he was one of the few at the conference who had an “unbiased view” and in the past had drawn criticism from both ends of the spectrum. . . .

Goats blue is gold for cheese maker – Daniel Birchfield:

The accolades just keep coming for Oamaru cheesemaker Whitestone Cheese.

Following its successful showing at last month’s Wisconsin World Champion Cheese Contest in the United States, where it picked up two top-five placings, Whitestone was last week awarded one gold and two silver medals in the dairy category of the 2018 Outstanding NZ Food Producer Awards.

Its Ohau Goat’s Blue cheese claimed gold and Lindis Pass Brie and Camembert silver.

Whitestone’s Shenley Station cheese was highly commended. . .

Ballance Agri-Nutrients reaps savings, health and safety benefits with new app:

A new locally developed mobile app is helping Ballance Agri-Nutrients provide a safer environment for staff and customers, while removing paper-work, streamlining business processes and providing cost efficiencies for the company and its shareholders alike.

The New Zealand farmer-owned co-operative, which provides fertilisers as part of its business, called on its trusted technology partner, Soltius, to develop the mobile app which plugs into the company’s traditional SAP enterprise software.

The Loader Driver app mobilises the company’s SAP S/4 HANA system, providing ‘a shopping cart in your loader cab’ for the drivers to be able to more easily load spreading trucks picking up fertiliser from Ballance Agri-Nutrients centres around New Zealand. . .

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