Rural round-up

26/09/2017

Solid result for Fonterra:

Fonterra farmers will receive a final milk payout of $6.52/kgMS for last season.

The 2016-17 payout, for season ending May 31, includes a milk price of $6.12/kgMS and a dividend of 40 cents per share.

The co-op announced the final payout as part of its 2017 annual results.

Revenue increased by 12% to $19.2 billion, with rising prices offsetting a 3% decline in volumes at 22.9 billion liquid milk equivalent (LME). Normalised EBIT of $1.2 billion was down 15% as a result of reduced margins across the business which also influenced net profit after tax, down 11% at $745 million. . .

Cattle disease tests now reach 20,000 :

The Ministry for Primary Industries has now completed more than 20,000 tests for the cattle disease Mycoplasma bovis.

The disease, which causes illness in cattle including mastitis, abortion, pneumonia, and arthritis, was first detected in New Zealand in a South Canterbury farm on July 21.The bacterium is an unwanted organism under the Biosecurity Act 1993. . . 

Lamb numbers tipped to be higher this season

Lamb numbers are expected to be between 5-10 per cent higher this season than last, Silver Fern Farms says.

This equates to about 20 million lambs, the meat processor said, and could be good news for farmers because demand from China and the United States is strong.

Cattle numbers are tipped to be similar or slightly up, with some of the retentions out of the dairy herd last year expected to boost bull and even heifer numbers.

“We expect lamb numbers to be up this coming season. All the feedback we are receiving is that the North Island in particular has seen good lambing,” chief executive Dean Hamilton said in a market forecast. . .

Fonterra names new CFO – Jonathan Underhill:

Fonterra Co-operative Group named Marc Rivers as chief financial officer, a position he currently holds at Roche Pharmaceuticals in Switzerland, and said he will take up the job on March 1 next year.

Mr Rivers will take up the CFO position left vacant when Lukas Paravicini was transferred to the position of chief operating officer, global consumer and food service in June. Mr Paravicini took over from Jacqueline Chow. . .

Farming is not just a job, it’s a lifestyle – Lyn Webster:

Some New Zealanders choose a business and lifestyle which takes them away from the cities.

Living rurally is often very isolated. Farmers harness water, which is abundant and otherwise runs out to sea, and turn this resource into crops, or pasture which is then used to feed animals for meat or milk.

This is an expensive and risky investment not for the faint hearted. Some days your survival depends on uncontrollable and fickle factors – weather, exchange rates, commodity prices and government policy.

Often success in farming has taken generations to achieve and many never make it. Farms are often passed down from father to son with the next generation willingly (or unwillingly in some cases) taking on the reins for the family farm. . .

America’s love affair – Jane Vesty:

New York PR director, New Zealander Jane Vesty, says our wines can ride the ‘premiumization’ trend

It’s hard to imagine a better confluence of trends for New Zealand wine in the U.S. – now the world’s largest wine market with annual sales of US$60 billion.

New Zealand wines have become the third highest imported wine into the U.S. by value at a time when American wine drinkers, especially millennial women, are trending toward premium wines that are also lighter and more elegant and sophisticated. These are perfect conditions for the Sauvignon Blanc juggernaut that accounts for 94% of our U.S. sales. . .


Rural round-up

21/09/2017

Bronwyn Muir replies to Rachel Stewart:

Dear Rachel,

I don’t really have the time to write this as busy running some rural businesses but here goes….

You probably don’t remember me – I held the Taranaki FFNZ Presidents position for nearly 4 years and sat in the wings biting my tongue while you ran off at the mouth / pen and tried to hold Feds and farmers to ransom time and time again.

Well I don’t hold the position anymore and have had enough of your tripe and personal attacks to put it politely – there is too much at stake for all New Zealanders right at this point! . .

QR code to prove SFF product origin:

Dunedin meat processor Silver Fern Farms is introducing new retail packaging in New Zealand and overseas, to allow consumers better access to proof of origin of the product.

Chief executive Dean Hamilton said the investment in traceability would support the growth of the company’s Silver Fern Farms branded products.

“We want to deliver transparency in the food chain for our consumers who are increasingly interested in knowing where their food has come from and that their food has been produced safely, with care and in a sustainable way.” . . 

First-time environment award entrants encourage others to put their hands up

Entering the Ballance Farm Environment Awards has been a great learning and development experience for new Kaitaia farmers Gay Pembroke and Mark Corby.

“The past 12 months have been great fun. It was a wonderful experience and I think entering the awards and being involved in the process has given us a lot more confidence that what we are doing is on track,” Gay says.

The couple have owned their 102ha dairy support/beef block at Kaitaia for the past three years. Neither Gay nor Mark are from a farming background, and the change that they made in their lives from 4ha to 102ha was exciting but massive. . . 

The time is ripe to transform agriculture and feed the world :

Political and agricultural leaders gathered at the University of Illinois today to see transformative work by Realizing Increased Photosynthetic Efficiency (RIPE) that has increased yields by 20 percent.

The research project announced that it will continue work to address the global food challenge with the support of a $45 million, five-year reinvestment from the Bill & Melinda Gates Foundation (BMGF), the Foundation for Food and Agriculture Research (FFAR), and the U.K. Department for International Development (DFID)..

The great GMO freak-out expose – Lenore Skenazy:

It all began when a neighbor of filmmaker Scott Hamilton Kennedy’s sent a text asking if she could borrow some organic milk.

Kennedy texted back, “You can borrow some milk, but I don’t have organic.”

The friend politely declined, which set Kennedy to thinking. His family drank conventional milk. Did that make him a dad who didn’t care about his kids’ safety, or the environment?

That would be odd, since he was nominated for an Oscar for his film about a community garden blooming in South-Central Los Angeles. .

Hurricane Irma wiped out half of Florida’s citrus crop –Kate Yoder:

The Sunshine State expected to harvest 75 million boxes of oranges this year. That number is looking decidedly slimmer after Irma knocked fruit off trees, flooded fields and groves, and broke irrigation pipes.

The hurricane took out an estimated 50 percent of the season’s citrus crop statewide, USA Today reports. Based on reports from the field, losses may be even higher in South Florida. . .


Rural round-up

25/08/2017

Clues to cow disease spread – Hamish MacLean:

The South Canterbury farmer whose property was first identified as infected with Mycoplasma bovis now fears the disease might also be present further north.

Glenavy farmer Aad van Leeuwen’s comments come after the Ministry for Primary Industries (MPI) announced yesterday the cattle disease was present in Otago.

It had been hoped the outbreak, first detected on Mr van Leeuwen’s Bennetts Rd farm on July 22, and then on his nearby Dog Kennel Rd farm on July 31, was confined to the South Canterbury area.

MPI said blood test results from a farm in the Oamaru area – known to have had a ”direct connection” with the Bennetts Rd farm prior to its current lockdown – showed ”some animals have been infected with the disease”. . .

Flux-meter data relevant for south – Yvonne O’Hara:

Information on nutrient losses from the Foundation for Arable Research’s (Far) flux-meter data-collection project will have applications for Otago and Southland arable farmers.
Far heard earlier this month it had been given $485,168 for its

”Protecting our groundwater: measuring and managing diffuse nutrient losses from cropping systems” project from the Ministry for the Environment’s Freshwater Improvement Fund.

The $1million project has been under way for three years in partnership with HortNZ, Ravensdown, five regional councils and Plant and Food Research. The balance of funding comes from industry and regional council partners. . .

Record 2016/17 season recounted at Zespri AGM

Zespri reported to around 500 grower-shareholders today at its Annual Meeting on a record 2016/17 season, with global sales up 19 percent from last season to $2.26 billion on the back of exceptionally high yields.

Pool results
Zespri Chairman Peter McBride explains the high yields and late start to the New Zealand season meant lower per-tray returns for Zespri Green but continued strong per-hectare returns for the Green business. . . 

New initiative prepares women for calf rearing:

Canterbury dairy farm contractor Nicole Jackson is on a mission to reduce the number of injuries to female calf rearers during the physically demanding calving season.

She’s created a six-week online conditioning and strengthening initiative for women to prepare their bodies for the physically gruelling calving season, which is currently under way in many parts of the country.

“There’s a lot of information out there about things like getting meals and the kids ready for calving season but not a lot about getting your body ready,” says Nicole, a mother of two young boys.

“Women are often involved in calf rearing and it’s really hard physical work. Women are often busy juggling kids and work so it’s hard for them sometimes to stay active and find time to work on their fitness . . .

The secret to cutting nitrogen leaching – Laurel Stowell:

Napier-based farming expert Barrie Ridler has some answers for farmers struggling to curb their nitrogen leaching.

Dairy farmers, especially in the Tararua District, are waiting to see how Horizons Regional Council reacts to the Environment Court’s April declarations – but are already under pressure to reduce the nitrogen they leach.

Mr Ridler says matching stock numbers to pasture growth is the secret, and keeping the two in balance will limit greenhouse gas emissions. . .

Youth scholarships help develop Ag careers – Esther Taunton:

A former Inglewood High School student is among the first recipients of a Silver Fern Farms Pasture to Plate Youth Scholarship.

Jake Jarman, who grew up on a central Taranaki dairy farm, will receive $5000 to help further his career in farming.

The scholarships are aimed at helping young people develop their careers in the red meat, food and farming industries and SFF chief executive Dean Hamilton said the talent emerging from applications indicated a bright future for the broader red meat sector. . .

 

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I’m a farmer. I don’t stop when I’m tired, I stop when I”m done.


Rural round-up

18/08/2017

Why will the least swimmable rivers receive less funding for clean up?:

Labour – Let’s answer this – why will regions with the least swimmable rivers receive less funding to clean them up?

IrrigationNZ is continuing to challenge the logic of Labour’s water tax proposal, after finding that regions with more swimmable rivers will receive more funding from the water tax, while those with the least swimmable rivers will receive less funding to clean up rivers.

“We pointed out to Labour in our meeting with them yesterday that region’s with more irrigated land actually have more swimmable rivers, while areas with lower proportions of irrigated land have more rivers graded poor for swimming,” says IrrigationNZ Chief Executive. “The data doesn’t support the idea that irrigation is a main cause of river pollution.” . . 

MPI wins farmers’ praise for cow disease response – Gerard Hutching:

Federated Farmers have given government officials grappling with the cow disease Mycoplasma bovis a pat on the back for their efforts in dealing with the issue.

Biosecurity spokesman Guy Wigley said farmers who met in Waimate last week to hear the Ministry for Primary Industries’ (MPI) latest update were impressed by the scope of what was being done.

“They are getting a huge number of tests done over the next month – 33,000. Farmers were impressed with the professionalism of the staff.” . .

Murray Grey cattle first choice for King Country breeder :

Bringing a cold young lamb inside on a cold spring mornings is a good excuse for a cold young farmer to take a break too.

It has been a wet season on Mike Phillips’ Honikiwi farm about 15 mins northwest of Otorohanga.

“The past month has been really busy and the weather’s not playing ball at all this week. I’ve come in to heat up a lamb so it’s a welcome chance for me to dry out too. I’m feeding about 30 orphan lambs at the moment so we’re in a bit of a routine.”

It’s a far cry from the day he named his murray grey cattle stud – Paradise Valley Murray Greys. . . 

McClay – Government approves TPP11 mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on.

“TPP11 ministers have committed to moving forward with the agreement as quickly as possible,” Mr McClay says. . . .

Commitment to TPP11 applauded:

New Zealand’s mandate to negotiate for the new Trans Pacific Partnership (TPP11) is good news, says ExportNZ.

New Zealand has taken a prominent role in moving the agreement towards completion following the US decision to withdraw from TPP negotiations this year.

ExportNZ Executive Director Catherine Beard says it is positive that all 11 members of the TPP group have agreed to stick closely to the terms of the original TPP agreement and are moving at pace towards concluding the agreement. . .

Dairy industry body joins GIA biosecurity partnership:

The Dairy Companies Association of New Zealand (DCANZ) has become the fifteenth and largest industry sector to join the Government Industry Agreement (GIA) biosecurity partnership, Primary Industries Minister Nathan Guy has announced today.

DCANZ is the national organisation representing the dairy processor and exporters sector, comprised of 11 members responsible for 99% of the milk processed in New Zealand.

“It’s very pleasing to have DCANZ working with the Ministry for Primary Industries and other industry partners on biosecurity,” says Mr Guy.

“The dairy industry is a crucial part of New Zealand’s economy, making up over a third of all New Zealand total exports. It is vital we work together to prepare and respond to biosecurity threats. . .

Silver Fern Farms Announce Winners of the Inaugural Plate to Pasture Youth Scholarships:

Silver Fern Farms has awarded six Plate to Pasture Youth Scholarships to an exciting group of young people from around New Zealand who are developing their careers in the red meat, food and farming industries.

Silver Fern Farms Chief Executive Dean Hamilton says the talent emerging from the scholarship applications indicates a bright future for the broader red meat sector. . . .


Rural round-up

01/08/2017

Mycoplasma bovis – Media Update Monday 31 July 2017:

A second dairy farm in South Canterbury that was already under biosecurity controls has today been confirmed as positive for the cattle disease Mycoplasma bovis.

This farm is linked to the initial property under investigation and is part of the 16 farm Van Leeuwen Dairy Group. The detection was not unexpected given close connections between the 2 farms.

MPI is today continuing sampling and testing for the disease on all farms in the enterprise, as well as neighbouring farms. . .

Business beats nostalgia for Elsthorpe sheep breeder Rick Lee – Kate Taylor:

Central Hawke’s Bay farmer has moved away from his dual purpose roots to breed stud sheep focused on meat production. He talks to Kate Taylor.

It’s hard to see the motorbikes from the mud as Rick Lee and his father Charlie pull up to the sheds on their Elsthorpe farm.

It is a wet winter after a dry summer, but there’s a smile on both faces under their woolly hats.

Charlie has been fixing something in the yards and Rick has checked the stock. A team of dogs have also done their duty for the morning and are tied up at the woolshed. It’s morning tea time. . .

Dairy with ‘pasture plus’ – Keith Woodford:

A key and consistent message over many years from DairyNZ to its 12,000 farmer members has been the importance of optimising the use of grass. Aligned to this, has been an ongoing negativity to non-pasture supplementation.

I know of no-one who disputes the ongoing importance of grass to the New Zealand dairy industry. However, there are many who would argue – and I am one of them – that DairyNZ has become blinkered to the opportunities that can arise from ‘pasture-plus’ dairy systems.

Ironically, despite the DairyNZ focus, there has been a steady drift by farmers to increasing use of supplement since the turn of the century, typically by matching stocking rate to peak pasture production and then feeding supplements in the shoulder seasons. . . .

Hamilton leaving SFF in strong position –  Dene Mackenzie:

Silver Fern Farms chief executive Dean Hamilton is leaving the meat processing group at the end of the year.
He made the announcement yesterday just days after saying SFF has never been in a stronger financial position.

He has been chief executive for three years.

Along with chairman Rob Hewett, Mr Hamilton helped drive the merger deal with Shanghai Maling, giving the Chinese company a 50% stake in the Dunedin-based SFF. . .

Milk ’em instead – Peter Burke:

Massey University sheep milking expert Craig Prichard’s fun exhibit at Fieldays — allowing site visitors to milk a sheep — had seriously optimistic intent.

Behind the fun was positive news about the rapidly growing sheep milk industry in NZ.

He noted that people have a sort of anxiety about food, prompting them to query its health properties and ponder whether it will make them feel better. People want to learn more about products made from sheep milk, Prichard says. . .

Dairy farmers warned to watch out for ergot – Nicole Sharp:

Three dairy farms in Southland and South Otago have been affected by ergot poisoning after feeding infected ryegrass to dairy cattle.

To date, only dairy cows had been affected but ergot poisoning can affect other animals.

Ergot is a naturally occurring fungus which can affect grains and grasses, and produces potent alkaloids poisonous to animals.

A Ministry for Primary Industries (MPI) spokesman said ergot poisoning occurred sporadically when environmental conditions were suitable in New Zealand. . .

Dyes in poultry feed meet demand for bright yellow egg yolks – Amanda Cropp:

Kiwi consumers are crazy about vividly coloured egg yolks, but Asian customers of an egg exporter prefer a paler version.

The New Zealand Egg Producers Federation confirmed synthetic carotenoid food dyes, or more expensive natural ones made from marigold, turmeric or paprika extracts, were fed to both caged and free-range laying hens.

Federation technical advisor Kerry Mulqueen​ said many commercial egg farms used them because New Zealanders preferred brighter yellow yolks.

The diet of some free range hens also included the colour additive because they did not eat a lot of grass, he said. . .


Rural round-up

29/07/2017

Shearing record falls:

Hawke’s Bay shearer Rowland Smith has smashed a World shearing record in England.

The 30-year-old father-of-two shore 644 romney and crossbred ewes in eight hours at Trefranck Farm, near St Clether in Cornwall, beating the previous record of 605 set by Invercargill shearer Leon Samuels in Southland earlier this year.

It was the latest in a string of world shearing records in the family, including the ultimate record of 731 ewes in nine hours by Matthew Smith at Tefranck on July 26 last year. . .

Knee-deep and wanting to cry – Sally Rae:

“It’s just the worst thing to happen to a farm,” Taieri dairy farmer Katie Clark rues as she stands in knee-deep floodwater in front of her home.

Calving is due to start in two days on the Clark family’s property, on Otokia Rd West, yet most of their farm remains under water.

Yesterday, their house was surrounded by water, firewood was floating in the yard, they could not use the shower or toilet, a mattress had floated from a shed into the garden, and there was no sign of the water level dropping.

Ask Mrs Clark how she is faring and she says “it’s horrible. We just want to cry. Look where our cows are.” . . 

Optimism follows record rain – Annette Scott:

Canterbury soils are saturated, crops have drowned and pastures have transformed to mud bowls, but in the aftermath of the worst-ever rain event on record, there are positives.

“Despite the fact we are sludging on in extremely trying conditions, and more rain, the positives would outweigh the negatives,” Federated Farmers Mid Canterbury vice-chairman David Clark said.

In the worst-hit parts of the South Island, the deluge dumped up to 180mm across Mid Canterbury in what has been recorded as the biggest rain event ever for the region, while in South Canterbury 67mm of rain fell in 12 hours, more than its average July rainfall of 40mm. . .

Ballance delivers strong FY2017 result and returns $54m to farmers:

• Gross trading result up $22 million to $56.8 million

• Shareholder rebate of $45 per tonne, with total distribution of $54 million

• Record urea production of 277,224 tonnes, with staged investment in Kapuni

• $35 million investment in distribution network and digital transformation. . .

Silver Fern CEO Dean Hamilton steps down – Rebecca Howard:

(BusinessDesk) – Silver Fern Farms announced the resignation of chief executive Dean Hamilton, who will leave at the end of the year, and said a search is underway for his replacement.

Hamilton has been chief executive of Silver Fern Farms, New Zealand’s biggest meat company, for three years and steered it through the Shanghai Maling investment and partnership. No reason was given for his resignation but co-chairman Rob Hewett said “we been discussing for some time the demands on him of working away from home” and the board “appreciates and accepts” his desire for change. . .

Wool prices firm ;

At yesterday’s South Island sale, longer 37-micron crossbred second-shear wool increased 40 cents to $3.15 a kilogram compared to last week’s North Island sale, while mid-length fibre gained 25 cents to $2.70/kg and shorter styles were firm at $2.40, according to AgriHQ. Meanwhile, 31-micron lamb wool was also up week on week by 80 cents to $3.70/kg.

Compared with the last South Island sale two weeks ago, 37-micron crossbred fleece was up 5 cents to $3/kg. Meanwhile the improvements in the second shear were not as large due to the premium that is typical for the South Island. The longer 37-micron second shear was up 5 cents to $3.15/kg while the shorter style was firm at $2.40/kg, AgriHQ said. . .


SFF closing Fairton plant

18/05/2017

Silver Fern Farms is planning to close its Fairton sheep meat plant:

Silver Fern Farms Chief Executive Dean Hamilton says the proposed closure is due to a significant decline in processing numbers over the last 10 years and the opportunity to now process the consolidated volume at its nearby Pareora site.

“There has been significant land-use change in Canterbury and Marlborough over the last decade and there are fewer sheep farms in these regions as they have made way for other uses such as dairy and wine. Higher returns from land-use conversion, and periods of drought in these regions have contributed to this decline in sheep numbers. While our beef processing volumes have risen significantly over this period, the lamb numbers available have steadily decreased.

“Fairton was consistently processing over 1 million lambs prior to 2010. Last season we processed under 500,000 lambs. This year that has continued to decline and we processed just over 325,000 in a six month seasonal operation.

“Whilst we believe the pace of land-use change has slowed considerably, we expect sheep numbers to consolidate around current levels rather than expand in the foreseeable future. It makes economic sense to consolidate this volume at our nearby Pareora site which has the capacity to process the combined numbers.

“Pareora is a large multi-species plant, an hour down the road in Timaru. Consolidating at one plant will provide a longer season with higher staff retention rates. We have recently invested $7m at Pareora to add to its capability.”

This will be tough on the hundreds of workers who will lose their jobs, and others who service and supply the plant and its staff.

But it comes as no surprise.

Sheep numbers have been declining for several decades but there is still excess capacity in meat plants.

Fairton’s closure isn’t the first and it is unlikely to be the last.

 

 


Rural round-up

01/05/2017

$6 a kilo for greasy wool is realistic – Alan Williams:

A wool price of $6 a kilogram greasy is being targeted by a Federated Farmers strategy being developed as necessary for the industry to achieve sustainable returns.

An industry levy was not part of the work being done, federation national meat and fibre group chairman Rick Powdrell said.

Getting detailed information on what happened to New Zealand wool overseas and where it went were key parts of the project. . . 

Fight for Feds top job likely – Annette Scott:

Competition is ramping up as nominations open for the Federated Farmers national board’s changing of the guard.

Speculation pointed to a challenge for the national leadership as president William Rolleston ended his three-year term.

The annual meeting was scheduled for June 22 in Wellington. Both the president and vice-president roles would come up for grabs.

Current vice-president Anders Crofoot, also at the end of his three-year term, confirmed he would stand for president. . . 

Meat co-ops search for winning formula – Tony Benny:

New Zealand’s two big meat co-ops, Silver Fern Farms and Alliance Group have both had new CEOs at the helm for the past two years, each charged with improving returns to their farmer-shareholders. Dean Hamilton and David Surveyor talked to Tony Benny.

When Dean Hamilton and David Surveyor each came from Melbourne to take top jobs in the New Zealand meat industry, little did they know they’d almost been next door neighbours before coming here.

Silver Fern Farms chief executive Hamilton recalls his first meeting with Surveyor when the subject of where they’d lived in Melbourne came up.

“I said I was in East Melbourne. He said, ‘So was I, what street?’. I said, ‘Central Park Road’. He looked at me and he said, ‘I was in Central Park Road too’, and it ended up we were only ten houses away but I’d never met him.” . . 

ACCC court action against Murray Goulburn applauded – Shan Goodwin:

FEDERAL Court action instigated by the competition watchdog against big dairy co-operative Murray Goulburn has been heralded a significant first step to bringing long overdue fairer trading practices to the milk supply chain.

Milk producers say the move shows the Australian Competition and Consumer Commission (ACCC) is serious about addressing breaches of competition law in the dairy industry and lays a good foundation for the results of it’s current inquiry into the competitiveness of milk prices. . . 

Hemp seeds to be legalised as food:

An agreement reached between New Zealand and Australian food safety authorities will see hemp seed legalised as food in New Zealand, Food Safety Minister David Bennett says.

Ministers at the Australia and New Zealand Ministerial Forum on Food Regulation in Adelaide today approved a standard to allow safe levels of low-THC hemp seed as a food.

“I stated my support at the Forum today and was pleased a change to the Australia New Zealand Food Standards Code was approved,” Mr Bennett says.

Mr Bennett says hemp has no psychoactive effect and has historically been used as a source of fibre and oil because it contains proteins, vitamins, minerals and fatty-acids. . . 

Rural Kiwis swipe right for country love on new farmer dating app – Jill Galloway:

Lonely Kiwi farmers are hooking into a United States based dating app to find love.

About 500 single New Zealanders are already members of the FarmersMatch dating service which has only been going since March.

Founder Derek Ma said the app could bring together single people with a love of the country. . . 

New Zealand olive oil scoops medals at international competitions:

Winners in two prestigious international Olive Oil competitions have just been announced and New Zealand features in both.
In the New York International Olive Oil Competition (NYIOOC), which is arguably the largest of international Olive Oil Competitions, Robinsons Bay and Old French Road both won GOLD with their Extra Virgin Olive Oil entries.

Both olive groves are from Akaroa and were Best in Show and Reserve Best in Show respectively at the 2016 New Zealand Extra Virgin Olive Oil Awards.
The 2017 NYIOOC attracted more than 800 entries from 26 countries and was judged by an international panel of experts. For more information see https://nyoliveoil.com/ . . .


Shareholders back SFF

15/08/2016

Silver Fern Farms’ shareholders have backed the board in its plan to enter into partnership with Shanghai Maling:

A strong majority of 80.4% of votes in favour of the 50/50 partnership with Shanghai Maling reinforced Silver Fern Farms Board’s position that the partnership is in the best interests of shareholders and the Co-operative.

The resounding support from shareholders came at a Special Meeting requisitioned by Messrs John Shrimpton, Blair Gallagher and a group which included 31 other shareholders who supported a statement stating they wanted to stop the $261m investment into Silver Fern Farms.

The 80.4% of shareholders’ votes in support of the partnership follows the result of the October 2015 vote, where 82% of votes cast supported the transaction. Both vote results exceeded the 75% Special Resolution threshold put forward by the Requisitioners. Chairman Rob Hewett said it was pleasing shareholders remained overwhelmingly supportive of the partnership.

“While the Board has clearly stated its view that the outcome of this meeting could not bind the company given the valid and binding approval last October, it is pleasing to see shareholders reaffirm their support and maintain their confidence in this exciting opportunity to create a sustainable Silver Fern Farms,” Mr Hewett said.

Mr Hewett said the partnership would create a strong Silver Fern Farms.

“This partnership will enable us to generate higher, sustainable returns for our shareholders.

“Shareholders have again made it clear they want progress for their company. They want meaningful change and are genuinely excited about the prospects presented through this significant investment and partnership with Shanghai Maling.

“The Board has strongly disagreed with the negative stance on the transaction taken by Messrs Shrimpton and Gallagher. They have caused significant disruption and their actions have been damaging to the company. Their allegations have proven to be entirely unfounded. Independent reviews by both the Financial Markets Authority and the Registrar of Companies have found no issue with the information provided to shareholders in October 2015 or the actions of the Directors.

Chief Executive Dean Hamilton said the process to complete the transaction had continued with all outstanding information now with the Overseas Investment Office for its consideration.

“We remain confident that we will achieve OIO approval prior to 30 September, and proceed to complete the transaction by 4 January 2017 as previously announced.

“The clear message from the voters is to get on with it, and realise this opportunity ahead of us.”

2610 shareholders voted representing 62.15% of eligible votes.

John Shrimpton says he accepts that shareholders have spoken.

New Zealand First which has also been a very vocal opponent of the plan continues to show it doesn’t understand the issue:

New Zealand First says Silver Fern Farms’ shareholders will regret selling majority control of their co-op to the Chinese but expects the Overseas Investment Office will greenlight it at breakneck speed.

“Today was the owners of Silver Fern Farms last chance to preserve one of New Zealand’s great assets for present and future farmers,” Mr Peters says. . . 

“How is it that foreigners can see value in what we produce, but the producers and this government can’t? Meat progressively joins forestry and increasingly dairying to condemn farmers as price takers at the bottom of the heap. . . 

This was a matter for shareholders not politicians.

SFF needs a large investment if it is to survive. Shareholders weren’t prepared to invest more and the company wasn’t able to get other investment from within New Zealand.

If the partnership doesn’t go ahead the company has no future, and even if it does get OIO approval, SFF has a lot of work ahead of it.

The deal leaves Alliance Group as the only co-operative in the meat industries, farmers who prefer that model can choose to support that company.


Rural round-up

04/07/2016

Drought conditions in South Island continue:

The impact of ongoing dry conditions on the eastern South Island means the medium-scale drought classification will be extended until the end of the year, Primary Industries Minister Nathan Guy has announced today.

“Extra funding of up to $88,000 will go to drought recovery coordination and the five Rural Support Trusts in the area, with $30,000 of this going to the North Canterbury Rural Support Trust,” says Mr Guy.

The announcement was made by Mr Guy at a meeting with local farmers in North Canterbury today, his fifth visit to the region since April last year.

“This will mean the area has been in drought for nearly two years, since its initial classification on 12 February last year. This will be the longest period of time a classification of this type has lasted for.” . . 

Jobs and land galore in Kaitangata:

Kaitangata has a jobs problem perhaps unique among small New Zealand towns – there are too many.

There are only two people without jobs in the entire town of 800, but at least 100 vacancies waiting to be filled.

Three-bedroom standalone houses are now being offered for only $230,000. There are currently 30 sections available, with the houses being built to order.

Clutha District Mayor Bryan Cadogan says they come with “stunning views out over the delta”. . . 

Past, present and future of the meat industry (part 3) – Allan Barber:

The future

There are two diametrically opposing views on the meat industry’s future outlook: either the world is short of protein and has an insatiable appetite for what we produce or meat will be replaced by artificial or synthetic proteins, much cheaper and easier to produce.I can’t predict just where on the continuum between these two extremes actual reality will settle or which direction the trend will move. But it’s probably worth hazarding a guess that the top end of the market will continue to prefer the real thing, produced and presented to a high quality, while the poor who are unable to afford much if anything will be happy to accept the cheaper, artificial version. It is also quite possible the increasingly global craze for fast food, especially hamburgers, could be met by synthetic beef, but here again there would be a premium end of the market demanding the real thing. . . 

MPs urged to back no-tillage farming – Alexa Cook:

An international soil scientist is urging the government to reduce carbon by promoting “no-tillage” farming to the primary sector.

The method is a way of growing crops or pasture from year to year without disturbing the soil through tillage, which results in carbon being captured in the soil instead of released through ploughing.

Scientist John Baker met with Labour MPs this morning as part of his crusade to get the message across that New Zealand has the machinery and technology to transfer carbon into the soil and keep it there. . . 

Silver Fern Farms announces contract extension and new special meeting date – Allan Barber:

Silver Fern Farms have issued two new media releases announcing a revised completion date for the contract with Shanghai Maling and a new date for the shareholder requisitioned meeting.

The revised date of 30th September for meeting the one remaining condition of the contract has been agreed in principle by both parties and is subject to agreement of both boards. SFF’s CEO Dean Hamilton said “We needed to allow more time to answer the further information requests from the OIO and to then provide sufficient time for the OIO and then Ministers to consider the application. We continue to believe that the investment will be approved given its substantial merits.”

“The agreement to the new date reflects positively on the ongoing commitment of both parties to the transaction.” . . 

  – Allan Barber:

ANZCO Foods has just released its annual result for the 15 month period ended 31 December which shows a reduced profit compared with its 12 month 2014 performance. Pre-tax net profit was $5.702 million ($7.128 million in 2014) while NPAT was $4.49 million, down more than 50% on the equivalent 2014 result which included part of the tax benefit from the 2012 loss.

Notable features of the result were a large increase in inventory and in current bank debt which can be partly explained by the purchase of the remaining 50% of Five Star Beef and the effect of the December quarter. However these factors do not seem to explain fully the extent of the increase. . . 

Super Fund swoops on Southland dairy farms – Mel Logan:

The New Zealand Superannuation Fund (NZSF) is actively buying up dairy farms in Southland, clinching deals on seven properties with more to follow.

The new acquisitions come under a dark industry debt cloud and take the NZ Super Fund’s farm portfolio to 21, following two recent dairy purchases in Canterbury. 

NZSF says while the dairy sector faces some difficult short term challenges, it continues to have strong long-term potential. . . 

Fonterra Enhances Pre-Season Preparation:

A single-minded focus on effectiveness, efficiency and innovation across all aspects of Fonterra’s winter maintenance programme is delivering savings for the Co-operative as it gets match-fit for spring.

Director of NZ Manufacturing Mark Leslie said this “winter shut” period is an important time of year for manufacturing teams as all assets across Fonterra’s network of sites are fine-tuned to ensure they are ready for the season ahead.

“Each year we process around 18 billion litres of milk, with the bulk of this carried out in the spring months. The work we’re doing now will help us get match-fit for that peak period.” . . 

Fonterra Launches The Switch To Z Biodiesel:

Fonterra has taken another step forward in its commitment to environmental sustainability, today launching its switch to new Z biodiesel – as a foundation customer for the ZBioD fuel.

Fonterra and Z were joined by Minister of Energy and Resources Hon. Simon Bridges, Whakatane Mayor Tony Bonne and other dignitaries today in celebrating the partnership at the Co-operative’s Edgecumbe site.

Fonterra Chief Operating Officer Global Operations, Robert Spurway said the shift to biodiesel is part of a move towards greater efficiency and sustainability across all operations, and helping Z make cleaner burning biofuel available in New Zealand. . . 

New Zealand Pork, Bacon and Ham Lovers Pay Attention!:

New Zealand pork, bacon and ham lovers pay attention – the ninth annual judging of the 100% New Zealand Pork, Bacon & Ham Competitions kicks of this Friday (1 July) in Wellington.

The Competitions celebrate New Zealand’s finest home-grown pork products and assist customers to identify and appreciate sustainable pork, bacon and ham which is PigCare™ Accredited*. The competitions support our pig farmers, who raise pork solely for New Zealanders.

This year an impressive 210 entries from butcheries nationwide will be scrutinized by an expert and independent panel of 34 judges comprising leading chefs, food connoisseurs and master butchers. The judges will blind-taste each entry to select New Zealand’s best pork, bacon and ham. . .  . . 


Rural round-up

10/05/2016

What impact do milk solids payouts have on the economy?:

Milk solids payouts have been in the news a lot of late with a rollercoaster ride of pricing that has shaken the farming sector’s confidence.

But what impact do these fluctuating prices have on the broader economy?

In the May year 2013/14, Fonterra paid its milk suppliers $8.40/kg for milk solids (excluding the dividend for shareholders). That is $1.3 million for the average dairy herd at the time of 413 cows producing 153,012 kg of milk solids. . . 

Farmers desperate for rain – Rhys Chamberlain:

The seemingly endless summer produced balmy days across Otago but the unseasonably warm start to autumn has caused further headaches for drought-hit farmers.

Niwa statistics show Dunedin is on track to record its second-lowest autumn rainfall on record with about three weeks to go before winter officially starts.

Although another 6mm of rain fell yesterday, Dunedin recorded just 53mm of rain between March 1 and May 7, just 6mm more than the 1939 record low. . . 

Chinese meat processors look to NZ ahead of chilled meat deal:

The new John Key-brokered deal to gain access for chilled meat to the China market is already attracting Chinese meat processors to the Bank of China (NZ) Agri-Business Investment and Trade Conference in anticipation of China relaxing the rules.

During Prime Minister Key’s recent visit to China, he was given an undertaking that the meat protocols between the respective regulatory authorities would be reformed to allow chilled meat exports to China. The deal, when it goes through, will add multi-millions to New Zealand’s trade with China. . . 

Organic dairy farmers reaping just rewards:

The huge rise in the milk payout to organic dairy farmers is a welcome encouragement for the dairy sector to move towards clean, green and high-value production, according to the Soil & Health Association.

Fonterra just announced a big jump in the milk payout to organic farmers, due to increasing global demand. For the 2016-17 season organic farmers will receive $9.20 per kg of milk solids, up from the current organic price of $5.65. Non-organic milk solids fetch just $3.90.

“Consumers worldwide are demanding safe, healthy food, and are prepared to pay for high quality, GE-free, organic dairy products,” said Marion Thomson, co-chair of Soil & Health. . . 

Silver Fern Farms Propose to Relocate Islington Venison Operations to South Canterbury:

 As a result of the pending expiry of its lease, and change in surrounding land use, Silver Fern Farms is consulting with staff at its Islington venison processing plant on options for closing the site and building a new integrated venison processing plant at its Pareora site, in South Canterbury.

Silver Fern farms currently leases land on the Waterloo Road site. The lease is shortly due to expire and the current plant buildings on the site are planned to be demolished to make way for new commercial developments at the Waterloo Business Park.

Silver Fern Farms Chief Executive Dean Hamilton says staying on the Waterloo Business Park site is no longer an option for the company. . . 

Pipfruit New Zealand gains role in protecting NZ biosecurity:

New Zealand’s $700 million pipfruit industry says it will have greater confidence in the country’s biosecurity system now that it will play an influencing role in helping to manage and govern biosecurity and risk.

Pipfruit New Zealand’s chief executive Alan Pollard said growers have welcomed the Government Industry Agreement for Readiness and Response (GIA) and supported the partnership with Government. . . 

Dairy Trainees Embark On Eye-Opening Study Tour:

The 11 finalists in the 2016 New Zealand Dairy Trainee of the Year competition begin a three-day study tour today, visiting award-winning farmers, Fonterra Innovation and Massey University’s No 4 dairy farm.

The trainees will also have a health check, visit a robotic farm, a goat farm, a raw milk farm and hear from a range of speakers on the state of the dairy industry and also on setting and achieving goals.

The tour will finish in Wellington where the group will join finalists in the New Zealand Share Farmer of the Year and New Zealand Dairy Manager of the Year competitions. The final aspect of their judging, an interview, will take place on Friday before the winners of the three competitions are announced at the 2016 New Zealand Dairy Industry Awards national awards dinner at the TSB Arenaon Saturday night . The winners will share about $170,000 in cash and prizes. . . 

Judges Begin Search For National Winner Of Ballance Farm Environment Awards:

The New Zealand Farm Environment Trust has assembled a strong line-up of judges to decide the next recipients of the esteemed Gordon Stephenson trophy.

Comprising six people with a broad range of skills and experience, the National Winner Judging Panel will select the next trophy holders from the eleven Supreme winners in the 2016 Ballance Farm Environment Awards (BFEA).

The recipients will be announced at New Zealand Farm Environment (NZFE) Trust’s National Sustainability Showcase in Northland on June 22, becoming ambassadors for the primary industry in a role that will take them around the country and beyond as they promote the importance of sustainable farming. . . 

Duncan Venison Unveils The “Bistro Fillet,”

A New, Innovative Premium Venison Cut:

Duncan Venison, one of New Zealand’s original venison producers, has developed a brand new item, which it has named the “Bistro Fillet.” The restaurant quality cut will be available to the public from 1 July, through a recently developed online store at duncan-nz.com.

Andrew and Vinnie Duncan, owners of the company, discovered the fillet when looking into ways to make the venison leg more useable, consistent and convenient for restaurants. They found a way to trim and portion the meat in that area, which has resulted in a tender, top quality cut that is ready for immediate cooking and serving. . . 


Rural round-up

23/11/2014

Meat Trade unrecognisable from 40 years ago – Allan Barber:

It is sometimes tempting to think nothing much has changed with meat exports in recent years when you read all the publicity about the problems in the meat industry. Since the beginning of this century the contrast with the dairy industry has been particularly marked, but suddenly this season the positions have been reversed. Sheep and beef farmers can hold their heads high again and it seems likely this state of affairs may even persist for longer than just this season.

MIE has been waging its campaign for meat industry reform based on the premise the industry is inefficient at procurement, processing and marketing with farmer ownership of the value chain the only solution. There is a degree of truth in the theory of inefficiency in all parts of the chain, but no certainty farmer ownership would cure it.

However that is a topic for another day. The industry’s efficiency has improved by several hundred percent since the Meat Board got out of product acquisition at the end of the 1970s and the processing part of the industry was delicensed in 1981. During the first half of the 1970s the Meat Board controlled all plant licenses and published the lamb and beef schedules. . .

Keen to engage with staff, farmers – Sally Rae:

When Keith Cooper’s surprise resignation as chief executive of Silver Fern Farms was announced last month, his successor’s name was unfamiliar to many. Agribusiness reporter Sally Rae meets Dean Hamilton, the man taking the helm of the billion-dollar business.

Dean Hamilton finds a challenge very appealing.

Having always been very driven and competitive, he acknowledged he enjoyed winning and taking the reins at Silver Fern Farms was an opportunity to ”have a big challenge and to win with that”.

Mr Hamilton joined the company as chief strategy officer in April, following more than 20 years in corporate finance and investment in both New Zealand and Australia. . .

Global commute for Kiwi meat workers – Mathew Dearnaley and Vaimoana Tapaleao:

Commuters stuck in motorway traffic might spare a thought for Anthony Russell’s crew of slaughtermen travelling more than 17,000km to work in Iceland each year.

The nine-member team, mainly from Hawkes Bay, are among about 30 New Zealanders whose skills are highly sought-after at six Icelandic freezing works for a brief sheep and lamb processing season before the long northern winter sets in.

Mr Russell has travelled for eight years from Waipukurau to Iceland’s northwestern coastal town of Blonduos (population – 811), where he runs SAH Products’ single processing chain after hand-picking his workmates for each two-month season. . .

Farmers alerted after tick-carried disease hits West Coast farm:

DairyNZ is alerting all farmers, including graziers, to keep an eye out for signs of a tick-carried disease that causes anaemia in cattle and to actively manage the risks of ticks to their herds.

Theileriosis is a disease caused by a species of Theileria, a blood-borne parasite that only affects cattle and is primarily transmitted by ticks. A new strain of Theileria orientalis called ikeda was first identified in Northland in late 2012. This strain has been associated with anaemia and death in cattle.

The DairyNZ warning comes after the Ministry for Primary Industries (MPI) confirmed that a case of Theileria had hit a South Island West Coast farm this Spring. MPI has concluded that a local population of infected ticks in Canterbury or the West Coast was responsible for transmitting infection to the 188-cow dairy herd. . .

Speech: DairyNZ Board Dinner – Jo Goodhew:

John [Hon John Luxton, Chair Dairy NZ], Tim [Tim Mackle Chief Executive] and members of the Dairy NZ Board for organizing this event.

I would like to acknowledge my Parliamentary colleagues: Hon Damien O’Connor, Ian McKelvie, Barbara Kuriger, and Fletcher Tabuteau.

There are also a large number of CE’s and leaders from business, government and local government here, including Kingi Smiler, Chairman of Miraka and Laurie Margrain, Chairman for Open Country Dairy, and Martyn Dunne, Director General of the Ministry for Primary Industries.

You asked me to speak on key priorities for me in my role as Food Safety Minister and for the Ministry for Primary Industry.

I will therefore concentrate on environment, water, skills and capability, as well as some comments on Food Safety.

This is a valuable time for discussion. There is an appropriate balance between environmental and social goals, and economic growth. Both of these can be achieved, and it requires collaboration between industry and government.

It is 200 years since the first dairy cows were brought to NZ. Over that time dairying has become deeply embedded in the Kiwi culture.

Our dairy products are now exported to over 140 different countries; it’s the major industry that keeps our economy afloat- contributing over $17 billion this year. . .

 

Keinzley Agvet Wairarapa Sheep and Beef Farm Business of the Year Competition:

The annual Keinzley Agvet Wairarapa Sheep and Beef Farm Business of the Year competition is calling for final entries before it closes on Friday 28 November 2014.

The aim of the competition is to promote innovative sheep and beef farming practice by identifying farmers in the area that demonstrate a well-balanced and positive approach to their business. These attributes will be promoted at a public field day which will be held on the winner’s property in early 2015. During the day the winner shares their management policies and farming objectives and answers questions from other farmers. These field days usually attract around 150 farmers and are a valuable opportunity to network and share ideas and knowledge.

The competition is open to any farmer, (lessee or owner), or farm manager in the region, whose farm income is derived mainly from sheep and cattle. Previous entrants of this competition are eligible and encouraged to re-enter. The prize package is approximately in $30,000 in cash and products. . .

NZ Yarn finalises acquisition Christchurch Yarns

NZ Yarn has today announced the acquisition of Christchurch Yarns has been finalised. The business will trade as NZ Yarn Limited effective immediately.

Elders Primary Wool (EPW) has secured a majority shareholding of approximately 58 per cent in the acquiring business NZ Yarn. The remaining 42 per cent shareholding is held by independent investors and growers. . .

 


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