Rural round-up

September 26, 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

September 21, 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

August 25, 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. . .

 

No automatic alt text available.

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


Rural round-up

August 18, 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

August 1, 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

July 29, 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

May 18, 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.

 

 


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