Rural round-up

November 9, 2018

Fonterra board gets controversial voice back – Sally Rae:

Fairlie farmer Leonie Guiney has returned to the Fonterra board, vowing to solve the co-operative’s ”reputational issues”.

Shareholders voted to elect Mrs Guiney and Zespri chairman Peter McBride to the board and they will take office at the close of today’s annual meeting at Fonterra’s Lichfield plant in the Waikato.

Sitting director Ashley Waugh, Maori Television chairman Jamie Tuuta, and John Nicholls were unsuccessful.

Mrs Guiney, who farms near Fairlie and is director of four dairy farming companies, served on the board from 2014 until last year. . . 

Fonterra Shareholders’ Council report questions value-add strategy – Gerard Hutching:

Fonterra has failed to deliver “meaningful returns” on shareholders’ capital since inception in 2001, a new Shareholders Council report says, which questions the value-add strategy.

The much vaunted value-add business has returned only 0.2 per cent a year more than ingredients or commodities, “significantly below the 1.3 per cent a year premium needed to justify the increased risk”.

“This is important because the value-add business units are now using an increasing share of Fonterra’s capital. For the first five years since inception – 2002-06 – the value-add business accounted for 36 per cent of Fonterra’s capital. This has increased to 50 per cent of Fonterra’s capital over the last five years.” . . 

Reducing sediment loss explored at field days – Ella Stokes:

Sediment mitigation was a hot topic at the field days hosted by the Pomahaka Water Care Group last week.

The farmer-led group has an overall target of improving water health – first on farm and also in the Pomahaka River.

Last week, there were three field days held in the West Otago area to explore solutions to reduce sediment loss, which is a major issue in the area.

Landcare Research environmental scientist and Pomahaka Water Care Group (PWCG) co-ordinator Craig Simpson said they had up to 70 people at one of the events. . . 

Youngsters keep old-timers happy – Neal Wallace:

Transforming a run-down farm into a high performance stock unit was satisfying for Ron Davis and Roger Chittock but their greatest pleasure came from seeing youngsters trained on it go on to successful farming careers.

Chittock has spent 37 years and Davis 29 years on the management board of the Salvation Army’s Jeff Farm, a 2630ha sheep, beef and deer property between Clinton and Gore in eastern Southland.

But overseeing the development of the 30,000 stock units farm was only part of their enjoyment.

Jeff Farm’s primary role is to train youth for agricultural careers and the two retiring board members say seeing young people grow and move into industry jobs was immensely satisfying. . . 

Goats ready to earn their keep – Neal Wallace:

Three years ago David Shaw questioned why he was still farming Cashmere goats.

This month garments made from fibre harvested from goats on his south Otago farm will be on sale in a new Untouched World retail store opening in Wanaka.

Potentially, the resurrected cashmere market could take several tonnes of fibre and he believes having about 25,000 Cashmere goats is achievable.

He has 1000 goats on his farm and has readily identified 5000 on other farms that could be crossed with Cashmere bucks. . . 

The apparel industry has rediscovered the wool from corriedale sheep – Heather Chalmers:

Demand from sportswear and fashion companies is sending the price of a previously written-off type of wool to record levels.

This has led the dual-purpose corriedale sheep breed to make a comeback, after many farmers chose to shift to more meat breeds.    

Corriedale wool is in the mid-micron range, coarser than most merino fibre, but far finer than crossbred wool that comprises most of the New Zealand clip. . . 

Five new Nuffield scholars named :

Five Nuffield scholarships have been awarded for 2019. They have gone to two dairy farmers, a sheep and beef farmer, an arable farmer and an analyst.

Ben Hancock was raised on his family’s Wairarapa hill country sheep and beef cattle farm. He now works in Wellington for Beef + Lamb New Zealand as a senior analyst, still near the farm he often returns to.

After working in research and conservation roles in NZ, the United States and Panama Hancock did a doctorate investigating ecosystem services. . . 

 


Rural round-up

January 25, 2018

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

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

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

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

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

Drought support events being run in Southland – Sally Rae:

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

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

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

Sheep and beef sector welcomes the conclusion of the CPTPP:

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

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

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

Demand for stags reflects deer farmer confidence:

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

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

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

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

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

Industry has huge potential, cashmere producer says:

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

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

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

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Rural round-up

January 19, 2018

Request to farmers as rivers dwindle – John Lewis:

Farmers across Otago are being asked to conserve water, with some rivers across the region dropping to their lowest levels on record.

Otago Regional Council data for October-December 2017 shows ”extremely dry” weather conditions in Central Otago and part of South Otago, and ”moderately dry” conditions for the rest of Otago.

ORC engineering, hazards and science director Gavin Palmer said some areas had particularly low rainfall and the present spell of dry weather, combined with little snow cap to augment river levels from snow melt last year, meant most Otago river levels were low compared to average levels for this time of the year. . . 

Cashmere ‘renaissance’ under way – Sally Rae:

Buoyed by the quality of cashmere produced by goats on their Clinton farm, David and Robyn Shaw believe the fibre offers an “amazing opportunity” for New Zealand farmers.

For the past 35 years, they have been working quietly behind the scenes to now be producing fibre they consider of equal quality to the best in the world.

Mr and Mrs Shaw, who have formed New Zealand Cashmere, recently announced a commercialisation programme with luxury lifestyle brand Untouched World and yarn manufacturer Woolyarns. . . 

New Far CEO well versed in industry – Sally Rae:

Alison Stewart has been appointed chief executive of the Foundation for Arable Research (Far).

Dr Stewart, who is general manager forest science at Scion, takes over in mid-March from founding chief executive Nick Pyke, who has led the organisation since 1995.

Last year, Mr Pyke signalled his intention to step down from the role, saying making the decision was not easy but the time was right.

Far is an applied research and information transfer organisation responsible primarily to arable growers. . . 

A2 to roll out US business to eastern seaboard -Paul McBeth:

(BusinessDesk) – A2 Milk Co plans to roll out its US business to nine states on the eastern seaboard, which it expects will expand its retail footprint by more than a third.

Auckland-based, Sydney-headquarter a2 is targeting 60 million Americans who account for about a fifth of milk consumption in the world’s biggest economy, adding New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, New Hampshire, Massachusetts, Vermont and Maine to the states it services in the US, it said in a statement. The milk marketer’s a2 branded milk has been accepted by a number of retailers in the region, which will this month expand its presence to about 5,000 retail stores across the US from the previous 3,600 stores. . . 

Fonterra helps farmers with green plans:

Environment Canterbury has confirmed that Fonterra’s farm environment plan template has met the requirements of the Canterbury Land and Water Regional Plan (LWRP).

The Fonterra template will make the process of designing a farming environmental plan (FEP) a lot easier, says Environment Canterbury chief executive Bill Bayfield.

FEPs are unique to a property and reflect the local climate and soils, the type of farming operation, and the goals and aspirations of the land user. . . 

Somatic cell to be added into cow Production Worth:

The equivalent of currency for cows will be updated in February to better reflect the industry’s focus on efficient, high quality milk production.

Production Worth, or PW, is an economic index calculated for all New Zealand dairy cows as an estimate of their lifetime production ability. It helps farmers identify the top performers in their herd, to decide which cow’s to keep, cull and assist in determining a value for buying or selling.

Four traits currently contribute to the PW calculation – milk volume, milk fat, protein and liveweight. A fifth trait will be added in February – somatic cell. . . 

d


Rural round-up

November 5, 2015

Fonterra expected to meet its forecast payout as lower production boosts prices – Tina Morrison:

(BusinessDesk) – Fonterra Cooperative Group, the world’s largest dairy exporter, is expected to be able to meet its forecast payout to farmers for this season even after dairy prices fell at a second consecutive auction.

Average prices fell 7.4 percent at last night’s GlobalDairyTrade auction, following a 3.1 percent decline the previous auction, which snapped four consecutive gains.

Auckland-based Fonterra, owned by about 10,500 farmers, has said it expects to pay its local producers $4.60 per kilogram of milk solids for the 2015/16 season. . . 

Women of Influence 2015 finalists: Rural

The finalists for the 2015 Women of Influence Awards in the Rural category, proudly sponsored by NZ Farmer.

Olivia Egerton

Olivia is movement manager for Te Hono, a movement of more than 130 CEOs and leaders who represent 80% of New Zealand’s largest and most innovative primary sector companies. Its vision is to shift New Zealand from a price-taking to a market-shaping nation. In the last 12 months Olivia has facilitated the transition of Te Hono towards a structured framework with more than 250 individual and collective actions achieved and many more in progress. . . 

Keri Johnston

Keri is a director and natural resources engineer at Irricon Resource Solutions, a leading environmental consultancy based throughout Canterbury and North Otago and working throughout the South Island. . . 

Julia Jones

Julia is a farm enterprise specialist with KPMG, providing continued support to the rural community through mediation and one-on-one support. One of Julia’s specialities is health and safety. . . .

Katie Milne

Katie is a Rotomanu dairy farmer on the West Coast, and a Federated Farmers’ board member. Katie was most recently awarded the Dairy Woman of the Year Award this year. With her partner, Ian Whitmore, she farms 125 hectares, milking 200 Jersey cows on a farm purchased in 1992. . . 

Bronwyn Muir

Brownyn is director of OnFarmSafety New Zealand, employing 12 staff throughout New Zealand, and focused on assisting farmers to implement compliant, practical, workable health and safety systems. . . .

Helen Slattery

Helen is a director of Slattery Contracting, Matamata’s only registered contractor with the New Zealand Rural Registered Contractor scheme, and she holds qualified contractor status. Five of the staff are qualified contractors, holding the National Certificate in Agricultural Contracting Level 3, with a sixth staff member going through the qualification at the moment.. . . 

Sophie Stanley

Sophie is head of rural at Figured, having started as part of the founding team in early 2014. Figured is an online farm financial management tool that integrates with Xero, and within a year the company has grown to close to 20 staff as well as growing its Australian business. . . . 

Michelle Thompson

Michelle is the chief executive at the Rural Health Alliance Aotearoa New Zealand and was instrumental in establishing this organisation. She is an experienced chief executive and senior manager who has provided services to a range of health sector organisations including the NZ Rural GP Network, the PHO Alliance, General Practice NZ, Compass Health, Southern Cross and Kowhai Health Trust. . . . 

The winners were announced last night. Katie Milne won the Rural section, Joan Withers won the Supreme Award.

IrrigationNZ launches 2015 snapshot of industry:

IrrigationNZ will launch its first-ever annual snapshot of New Zealand’s irrigation sector at today’s AGM in response to enquiries about the health of the industry and proposed developments across the country.

“The 2015 Irrigation Snapshot provides a transparent window on irrigation in New Zealand – where we irrigate, what’s happening with future developments, how much water we use, what it is taken for and the value this creates for our nation. Many stakeholders have asked for an update on the status of irrigation so we’ve pulled together the latest data to illustrate the national situation,” says IrrigationNZ CEO Andrew Curtis. . . .

Farmers welcome Filipino workers’ reprieve:

Farmers are pleased at the government’s offer of a second chance for Filipino dairy workers caught in visa scams.

Applicants who admit to providing false information about their work experience in order to gain a visa, but who are otherwise compliant, will be eligible for a further work visa.

But workers and advocacy groups are still concerned there could be snags in the process.

Immigration New Zealand has been reviewing the past year’s visa applications from Filipinos after a dual Filipino/New Zealand national was charged with falsifying qualifications and work experience in visa applications. . . 

Wine industry welcomes registration system for wine regions:

Introduction of a Bill by Commerce and Consumer Affairs Minister Paul Goldsmith enabling geographical indications (GIs) for wines and spirits to be registered in New Zealand has been warmly welcomed by New Zealand Winegrowers.

“The Geographical Indications (Wine and Spirits) Registration Amendment Bill will be a significant advance for the New Zealand wine industry,” said New Zealand Winegrowers CEO, Philip Gregan. “Our ‘Geographical Indications’ – the names and places where our wines come from – are at the very heart of the New Zealand wine story and this Bill provides an additional level of protection for them.” . . .

First Cheese Off the Line at Fonterra’s Eltham Expansion:

The expansion of Fonterra’s Eltham site has reached a key milestone, with the first individually wrapped slices of cheese now coming off its new production line destined for supermarket shelves around the globe.

The new line is part of a $32 million project to bolster the site’s cheese capability, doubling the amount of the world-renowned sliced cheese that can be produced at the Taranaki-based site.

Director New Zealand Manufacturing, Mark Leslie says Fonterra is constantly looking at trends in key markets and working with customers to help meet their growth with investment. . . 

Nominations in for Silver Fern Farms’ director elections:

Four nominations have been received for the one available position on the Silver Fern Farms Board of Directors.

Angus Mabin retires by rotation at the Company’s 2015 Annual Meeting which is to be held in Dunedin on Wednesday 16 December 2015. Angus Mabin has advised he will not stand for re-election.

The candidates for election are:

– Anthony O’Boyle

– William Oliver

– Oliver Saxton

– David Shaw . . .

Agricultural economics explained with an analogy to solar and wind power – Utopia:

It’s a video, click the link to watch (there’s a few words that might offend).


Rural round-up

December 17, 2013

Canterbury suffers another blow:

Farmers are reeling from yet another blow, after a severe localised hail storm tore its way through the Mayfield area of Mid-Canterbury.

“As the year draws to a close and we are fast approaching harvesting season, Mid-Canterbury farmers are facing a financial nightmare after the hail storm yesterday,” says David Clark, Mid-Canterbury Grain and Seed Chairperson.

“This has been a mongrel year for farmers in Mid-Canterbury; we have gone from snow to wind storms to a very dry spring to now this. It is a horrible way to finish off the year, with radish and carrot crops shredded and wheat and barley crops having the stuffing knocked out of them. . .

A timely reminder:

Fonterra dropped a bombshell last week when it announced its latest consideration on its farmgate milk price.

For farmer shareholders in New Zealand’s largest company, it had been shaping up to be a particularly merry Christmas, with economists suggesting the milk price could be lifted as much as 40c.

Elevated prices, which have defied predictions and remained at very high levels – the GlobalDairyTrade price index was just 7% below its April high and about 50% higher than a year ago – raised expectations for the forecast to rise. . .

UK butter eaters lose taste for Anchor after dairy giant cuts NZ ties – Nicholas Jones:

British shoppers have noticed that their favourite Anchor butter tastes different – with the explanation being it’s no longer from New Zealand.

In Britain, the famous Kiwi brand is used by European dairy company Arla. Until recently, Arla had shipped over New Zealand butter made by Fonterra, but has now switched production to its British facilities.

The Arla logo has been added to block butter packs, but the company has faced a number of complaints from disgruntled customers who were unaware of the change. . .

How much dairying is too much in terms of water quality? – Daniel Collins:

On 21 November the Parliamentary Commissioner for the Environment, Jan Wright, released her second report on water quality. It warned that business-as-usual dairy expansion by 2020 would leave our lakes and rivers more degraded than they are now, even with improved mitigation. I’d now like to re-cap what the report concluded, how it got there, and how it was received.

The report

The purpose of the report was to illustrate how land use change could affect future nutrient runoff – nitrogen and phosphorus – based on a simple, business-as-usual scenario for 2020.

Motu used a combined economics-land use model called LURNZ to project what land use changes are likely by 2020, driven by commodity process and knowledge of land use practices and landscape characteristics. Sheep and beef farming were expected to give way to dairying, forestry, and even reversion to shrubland. . .

Director elections mean an exciting Red Meat Industry:

Federated Farmers looks forward to working with the Boards of the cooperatively owned Silver Fern Farms and Alliance Group following their recent Director elections.

“Federated Farmers congratulates the new directors elected to our two largest cooperatives, Don Morrison at Alliance Group as well as Richard Young and Dan Jex-Blake at Silver Fern Farms,” says Jeanette Maxwell, Federated Farmers Meat & Fibre chairperson.

“We also congratulate Alliance Group chairman Murray Taggart on his re-election.

“Federated Farmers Meat & Fibre wishes to formally thank Alliance Group’s Owen Poole and Jason Miller as well as Silver Fern Farms’ David Shaw for their service to shareholders. . .


Rural round-up

November 7, 2013

DairyNZ ramps up investment in environmental area:

DairyNZ is boosting dairy farmers’ investment in the environmental area by 61 percent in this financial year, from $6.7 million to $11 million as part of its efforts to meet its commitments under the new Sustainable Dairying: Water Accord and the National Policy Statement on Freshwater Management.

DairyNZ Chief Executive, Tim Mackle, says the environmental portfolio is helping farmers boost profits while lowering their environmental impact, supporting farmer-led waterway improvement projects and investing in nutrient management research and resources. “It also supports our industry’s new dairy farming strategy and our objective to have proactive environmental stewardship.

“Biosecurity is also a big investment at $16 million but even this funding has environmental benefits as we are the largest non-government funder of the TBfree programme that focuses a lot on possum control with clear biodiversity benefits,” he says. . .

Landcorp focus will stay at home – Alan Williams:

Landcorp is getting approaches to develop and manage farms overseas but is busy enough in New Zealand.

The magnitude of its work in NZ and the opportunities ahead made expansion offshore unlikely, new chief executive Steven Carden said.

Three months into his posting at the State-owned farmer, he is working through a strategy review with the board, taking stock of where they are and the opportunities ahead. . .

Challenges to food industry for feeding the world:

Finding innovative ways to utilise waste, a greater focus on consumer driven research, and increased Government investment are just some of the challenges facing the food industry in New Zealand according to Lincoln University’s Professor of Food Science, Charles Brennan .

Professor Brennan was speaking as part of the Foods for Now and the Future Forum held at Lincoln University last week. The forum was arranged by the New Zealand Institute of Agricultural and Horticultural Science and the New Zealand Institute of Food Science and Technology.

On the subject of wastage in food production and consumption he noted that some 50% of packaged salad greens and 40% of bread and cereals may be discarded in some countries around the world. However, utilising smarter production methods and taking a more innovative approach when it comes to wastage could mean up to one billion people could be fed worldwide. . .

Fonterra Strengthens Its Position in Australia:

Fonterra has today further strengthened its position in the Australian dairy industry by acquiring the assets of Tasmanian yoghurt business, Tamar Valley Dairy.

Under the agreement, Fonterra will acquire the processing equipment, the related services, and intellectual property and trademark for the Tamar Valley Dairy brand. The acquisition is effective towards the end of November (subject to completion of the sale), with the exact date to be confirmed.

“Fonterra is a long-standing partner of Tamar Valley Dairy, and has supported and worked closely with the administrators of the family-owned business during what has recently been a difficult period for the Tasmanian business and its founders,” said Judith Swales, Managing Director, Fonterra Australia. . .

Aussie cattle empire sale fails, amid land wrangle:

A second huge Australian cattle operation has had trouble selling, with the North Australian Pastoral Company being withdrawn from the market, amid tough industry conditions and a growing debate over land ownership.

North Australian Pastoral Company’s ruling Foster family has taken down the for sale sign after six months of marketing the 58,000-square kilometre (14.3m acre) property – an area nearly twice the size of Belgium and nearly as big as the US state of West Virginia – failed to attract an “acceptable proposal”.

Besides the Foster family’s 61% stake in Napco, a 34% stake held by London-listed plantations group MP Evans was also up for sale. . .

New Directors Appointed to Board of Aotearoa Fisheries Limited:

Te Ohu Kaimoana (the Maori Fisheries Trust) has appointed three new directors to the board of Aotearoa Fisheries Limited.

Mr Anthony Hannon, a merchant banker with extensive experience in tax consulting, private equity and asset management, and Ms Liz Ward (Ngāti Porou), a former Chief Executive of Deep Cove Fisheries and Wellington’s CentrePort, have been appointed for a term of three-years. Mr Alan Gourdie, an Auckland-based consultant with international management and marketing experience as a chief executive and director, has been appointed for a two-year term from 1 November. . .

Nominations in for Silver Fern Farms’ Director Elections:

Three nominations have been received for the two positions on the Silver Fern Farms’ Board of Directors.

Eoin Garden and David Shaw retire by rotation at the Company’s 2013 Annual Meeting which is to be held in Dunedin on 18 December 2013.

Eoin Garden has advised he will not be standing for re-election and will therefore retire at the Annual Meeting. David Shaw has advised that he will stand for re-election.

The candidates for election are:

Dan Jex-Blake
David Shaw
Richard Young . . .


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