Rural-round-up

June 26, 2018

New Zealand primary sector nervous over prospect of trade wars – Jamie Gray:

New Zealand’s primary sector is viewing the rising tide of global trade protectionism with trepidation, but escalating trade tensions between the United States and China have yet to spill over into this country’s main exports.

Primary sector and trade representatives welcomed last week’s launch of trade talks with the EU as positive step.

At the time, European Union trade commissioner Cecilia Malmström voiced concerns about trade issues that have plagued markets in recent weeks after the US Donald Trump administration imposed steel and aluminium tariffs and the US and China stepped up their war of words. . . 

Guy Trafford traces the implications for agricultural trade flows from the game of poker the US is playing with China. All sides are vulnerable, even those not directly involved – Guy Trafford:

President Trump and China’s President Xi Jinping are involved in a high stakes game of poker. Trump played the first hand with a $5 0billion tariff card. Xi Jinping immediately matched it with a similar call and put tariffs on US products, namely sorghum and soya beans.

Trump then matched and raised the stakes by increasing the tariffs to another $200 billion with the threat that if China matched this then another raise to $450 billion would be played.

This threat would put tariffs on over 90% of China’s exports to the US. . . 

Clampdown on foreign farm buyers scares off investors with ‘tens of millions’ in funds, agents say – Jonathan Underhill:

(BusinessDesk) – The government’s directive to the Overseas Investment Office to raise the bar in overseas applications to buy sensitive New Zealand land has scared away tens of millions of dollars in investments in rural property and will hurt farm values, real estate firms say.

The ministerial directive in a letter from Finance Minister Grant Robertson last November to Land Information NZ chief Andrew Crisp said the government is concerned to ensure any benefits from overseas investment in rural land “are genuinely substantial and identifiable” and economic benefits must be considered alongside environmental, social and cultural goals. Owning sensitive New Zealand assets was “a privilege, not a right.” The directive came into effect on Dec. 15 last year. . . 

Foreign farm buyer applications withdrawn in the past 12 months have tripled, OIO figures show – Jonathan Underhill:

(BusinessDesk) – The rate at which potential foreign buyers of New Zealand farms subsequently withdrew their applications to the Overseas Investment Office tripled in the past 12 months, OIO figures show.

The data captures the period since the government’s directive to the OIO to tighten rules for overseas applications to buy sensitive New Zealand land (which means any farmland over 5 hectares). The ministerial directive in a letter from Finance Minister Grant Robertson last November to Land Information NZ chief Andrew Crisp said the government aims to ensure any benefits from overseas investment in rural land “are genuinely substantial and identifiable” and economic benefits must be considered alongside environmental, social and cultural goals. Owning sensitive New Zealand assets was “a privilege, not a right.” The directive came into effect on Dec. 15 last year. . . 

Bayer Hawke’s Bay Young Viticulturist of the Year 2018 announced:

Congratulations to Jonathan Hunt from Delegats, Crownthorpe Vineyard, who became the Bayer Hawke’s Bay Young Viticulturist of the Year 2018 on Thursday 21st June.

This is the third year Hunt has competed and he is thrilled to have won the title and to be going on to represent Hawke’s Bay in the National Final.

Congratulations also goes to Nick Putt from Villa Maria who came second and Grace Petrie from Trinity Hill who came third. . . 

Creative tea and coffee trends good news for NZ dairy:

It’s tea, but not as you know it. Right now people are adding more than just milk and sugar to their cuppa’s and Fonterra is set to meet the demand for adventurous tea and coffee drinks around the world.

Beverages made with yoghurt, topped with cream cheese and mixed with cream are growing in popularity, leading Fonterra to establish a new channel within its Global Foodservice business, Beverage House.

Almost 600 million cups of tea and coffee are consumed out-of-home daily in the Asia Pacific region, a 22% increase on five years ago. . . 

Report Provides Zero Carbon Solution:

Smoke free, plastic free but, more significantly, tillage free.

A report to the Productivity Commission is recommending “bold action” to eliminate tillage or ploughing within the next five to 10 years and replace it with low disturbance no-tillage.

Every time soil is tilled through conventional methods, it releases huge quantities of CO2 into the atmosphere which contribute to global warming.

While the government has introduced a Zero Carbon Bill, it has overlooked the impact of cultivation which causes up to 20 percent of global greenhouse gas emissions and the report challenges the Minister, James Shaw, through the Productivity Commission, to do something about it. . . 

In dairy, a cutthroat U.S. business versus a Canadian cartel – Jerry Zremski:

A little comparison shopping goes a long way toward explaining why President Trump decided to wage a trade war with Canada.

A gallon of milk cost $2.89 at the Tops Friendly Supermarket on Niagara Street last week, while the same product at the Avonmart on Garrison Road in Fort Erie cost $3.35 in American dollars. And Fort Erie shoppers are getting a bargain: According to Numbeo, a crowd-sourced comparison price guide, the average cost for a gallon of milk throughout Canada is $6.32 in American dollars, nearly twice the U.S. price.

And it’s all because the United States and Canada operate their dairy industries in ways that are as different as a bald eagle and a maple leaf. . . 

World Desertification Day: Stories of Resilience from Somalia :

In observation of World Day to Combat Desertification and Drought, delve into four stories of resilience from desert lands in Somalia. Meet two farmers and two female entrepreneurs, who—supported by the Somalia Emergency Drought Response and Recovery Project (SEDRP)—share their experiences of grit, hope, and resilience despite years of drought and famine risks.  Together with partners, particularly the UN’s Food and Agriculture Organization (FAO) and the International Committee of the Red Cross (ICRC), the project aimed to scale-up drought response and recovery in Somalia.

1. An impressive harvest, a happy farmer

The story of Saed Mohamud may not typically be expected from Somalia in 2017, two years into a severe drought that put the country in a nationwide state of natural disaster and famine—yet Mohamud is not alone. In 2017, thousands of families beat the odds and produced good yields, thanks to concerted efforts from government and partners, and solid donor investment in building farmers’ resilience against drought. . .


Rural round-up

July 19, 2014

Regen owner named Mumtrepreneur of the Year:

Wellington businesswoman Bridgit Hawkins has been named Fly Buys Mumtrepreneur of the Year in the Fly Buys Mumtrepreneur Awards.

Hawkins’ business, Regen Ltd, helps dairy farmers manage a key issue – disposing of cattle effluent. The company has developed software that turns data, including soil moisture, temperature and rainfall, into a simple daily recommendation that’s sent to the farmer by text message.

Since Regen launched in 2010, the company has helped hundreds of farms across the country manage effluent disposal efficiently and its customer numbers have doubled year on year. . .

$107.5m to Lincoln University science rebuild:

Tertiary Education, Skills and Employment Minister Steven Joyce today announced that the Government has approved in principle to provide up to $107.5 million in capital funding toward the rebuilding of Lincoln University’s science facilities destroyed in the Canterbury earthquakes.

“Lincoln University suffered very significant damage in the Canterbury earthquakes, and this money will assist the university with its rebuild programme and help it get back fully on its feet. Lincoln is focused on growing its undergraduate enrolments and the rebuild of its key facilities is the next stage in returning it to sustainable operations”, Mr Joyce says.

Lincoln University lost more than 40 per cent of its academic floor space in the Canterbury earthquakes, including much of its facilities for science teaching and research. The rebuild will involve demolishing the badly damaged Hilgendorf and Burns buildings, and replacing them with modern facilities. . .

Federated Farmers on Ruataniwha appeal:

While Federated Farmers did not lodge an appeal with the High Court against the Board of Inquiry decision on the Ruataniwha Dam and the associated Plan Change 6, it is now considering options in light of Hawke’s Bay & Eastern Fish & Game Councils lodging an appeal.

“Federated Farmers principal interests are in the plan change rather than the dam, which was given consent to proceed,” says Will Foley, Federated Farmers Hawke’s Bay Provincial President.

“I cannot comment on the merits of Fish & Game’s appeal until we see it next week.

“Since we now know of Fish & Game appeal, we must now reconsider the best way forward.  I need our members to know that we do have options.

“It seems farcical since the news today says Kiwi farmers will have to make big changes to cope with climate change, following release of the International State of the Climate report.  Yet more reasons to store water. . . .

Looking for the South Island’s next top farmer:

The South Island’s next top farmer is out there and Federated Farmers wants to see farmers nominated for the 2014 Lincoln University Foundation South Island Farmer of the Year award. The 2013 award being won by the winemaker, Peter Yealands.

“New Zealand farming does not celebrate success enough,” says Dr William Rolleston, Federated Farmers National President.

“As the farmer-comedian Te Radar told us at Federated Farmers’ National Conference, we do not take time to stop and appreciate just how good our farmers really are. . .

Levy vote about capturing wool’s value –  Chris Irons:

In recent news, one might think that sheep farming is all about red meat, but the sheep farmer’s story is not all about protein. We farm a dual purpose animal and whilst the red meat side is performing, its fibre counterpart has yet to reach its full potential.

Sheep farmers are world leaders in producing fibre; supplying 45 percent of the world’s carpet wool, we are the world’s third largest wool exporter. To capture that value behind the farm gate and building the industry’s worth of $700 million, we need a Wool Levy.

The Wool Levy Consultation has been officially launched, and the Referendum will be voted on the 10th October. Imagine the possibilities, with the average value of our raw wool exports having increased by 38 percent from 2010 to 2014. . . .

Rural elderly communities to struggle – report:

An ageing population where deaths outnumber births will be a challenge for rural communities who won’t be able to afford the services they need, according to analysis of New Zealand census data.

The challenges of adapting to an older population are highlighted in the Our Futures report, by an expert panel at the Royal Society of New Zealand.

Panel chairman, Professor Gary Hawke, says the review is a unique multi-disciplinary approach that looks at the big picture.

“We wanted to highlight what an evolving New Zealand society might look like, what is underlying these changes, and the challenges and opportunities these present.” . . .

Mixed fortunes at wool auction:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the South Island auction offering 10,122 bales this week received varied support despite a weaker New Zealand dollar compared to the last sale on 10th July.

The weighted currency indicator was down 1.11 percent with 81 percent of the offering being sold.

Steady demand from China underpinned the Fine Crossbred sector, however most carpet wool types eased as contracts in this area have been harder to conclude recently. . .

Value Creation and Environmental Sustainability for Marlborough Wine Industry By-Products:

Marlborough’s wine producers have come together with the Marlborough District Council in a new collaborative approach to the management of grape marc disposal, to generate a new, commercially viable and environmentally sustainable product from grape waste.

Facilitated by the District Council, participating wine companies have formed the “Marlborough Grape Marc (MGM) group” to advance a proposal for an environmentally sustainable use of the wine industry’s waste streams.

The MGM group is chaired by Eric Hughes of Pernod Ricard Winemakers with representatives from Cloudy Bay, Constellation Brands, Delegat’s, Giesen, Indevin, Matua, Mount Riley, NZ Wineries, Pernod Ricard Winemakers, Saint Clair and Villa Maria. The group members generate approximately 80% of the wine production in Marlborough. MGM is an open collective, it is hoped that further companies will join and support this industry wide initiative. . .


Rural round-up

May 24, 2014

NZ’s rural businesses struggle to attract equity capital to develop – Graham Turley:

Agri-business is New Zealand’s most productive and successful business sector yet it struggles to attract investor capital.

It seem counter-intuitive, particularly with all the talk of food bowls for Asia, that a sector which represents more than 25 per cent of New Zealand’s economy is widely perceived as difficult and inaccessible for investment – whether those investors are retail, large fund managers or overseas looking to invest in New Zealand’s agricultural success story.

Few successful agriculture-based businesses are listed on the NZX, especially when you consider how significant a contributor agriculture is to the economy. . .

Mackenzie Country farmer wins top deer award:

Paddy Boyd, manager of Haldon Station in the Mackenzie Country, is the winner of the 2014 Deer Industry Award.

The announcement of the award at the annual Deer Conference in Methven on Wednesday was followed by a sustained standing innovation for a farmer who has been a behind-the-scenes industry leader from the 1970s to the present day.

The award citation listed Paddy’s involvement in numerous industry groups including quality assurance, the Cervena strategy, velveting standards, Tb eradication, genetic improvement and environmental standards. . .

Kiwi team and supporters in charge in Ireland:

Six New Zealand shearers, including World Championships representatives Rowland Smith and John Kirkpatrick, have made it to the semi-finals of the Irish All-Nations Open championships semi-final in Gorey, Ireland.

Smith headed the 18 qualifiers after 70 shearers took part in the open-entry heats on the first day of the 16th Golden Shears World Championships, while Kirkpatrick qualified in third place.

They were separated by Scottish World championships contender Hamish Mitchell, whose teammate and defending World champion Gavin Mutch was a surprise elimination. The All-Nations has no bearing on the World Championship, for which the first round will be held tonight (Friday NZT).

The other New Zealanders still in All-Nations contention are five-times World champion David Fagan and son Jack, and Smith’s brothers, Matt and Doug. . . .

Passenger to be investigated for carrying plants:

The Ministry for Primary Industries (MPI) is investigating an air passenger it nabbed carrying two concealed plants in her shirt.

Watchman, one of MPI’s most experienced detector dogs, sniffed out the plants on the passenger arriving from China at Auckland airport yesterday afternoon.

The woman had rooted cuttings in a plastic bag hidden in her shirt sleeve and under a coat.

“It appears the cuttings were to be planted and that this was a deliberate attempt to smuggle risk items into New Zealand,” says Craig Hughes, MPI’s Manager, North, Passenger and Mail. . .

Delegat’s says 2014 harvest supports sales growth projections – Tina Morrison:

(BusinessDesk) – Delegat’s Group, the winemaker which last year bought Australia’s Barossa Valley Estate, said its just completed 2014 harvest will allow it to achieve its forecast future sales growth.

The Auckland-based winemaker expects to increase wine sale volumes by 2 percent to 1.985 million cases in the year ending June 30, accelerating to an 8.8 percent pace in 2015 and 8.9 percent in 2016, according to projections detailed in its 2013 annual report. The 2014 harvest amounted to 35,127 tonnes, as its New Zealand vintage increased 18 percent to 34,123 tonnes. Its Australian harvest, the first vintage since acquisition of Barossa in June last year, amounted to 1,004 tonnes, the company said today.

“The 2014 vintage has delivered excellent quality in all regions,” managing director Graeme Lord said. “The group has appropriate inventories to achieve future sales growth in line with guidance provided in the 2013 annual report.” . . .

Researchers start a wine revolution:

The global wine industry may be on the cusp of a revolution, thanks to pioneering genetic research conducted by scientists at Lincoln University and Plant & Food Research that not only has ramifications for controlling disease and increasing productivity, but will quite likely mean completely new varieties of grapes and styles of wine.

The research project initially commenced to fill a knowledge gap in the identification and function of the genes that underpin the key characteristics of grapevines. The goal was to bed down a research framework, such as those used by researchers with other plant species, to establish a knowledge base for the study of gene behaviour and the critical processes of grape production.

As the research developed, however, new opportunities became apparent, and a greater emphasis was placed on investigating the potential for manufacturing and encouraging the expression of genetic elements within grapevines which may, in turn, come with commercial benefits. . .

Premium Amisfield Wines to Be Showcased At International Event in Venice, Italy:

Celebrated New Zealand wine producer Amisfield will showcase a premium selection of its wines to a select international audience at the prestigious 14th Venice Architecture Biennale.

The specialist producer of multi-award-winning Pinot Noir and aromatic white wines will be the exclusive wine sponsor and supplier to the New Zealand Institute of Architects (NZIA) exhibition at the Biennale from June 5 to November 23.

Amisfield wines, sourced from fruit grown on its estate vineyard beneath the Pisa Mountain range in the renowned Central Otago region, will be served during the official opening events and associated events for the duration of the Biennale at the New Zealand exhibition, to be staged in the Palazzo Pisani Santa Marina. . .

Comvita annual profit rises 3.3% as honey price squeezes margin, sees more growth in 2015 – Paul McBeth:

(BusinessDesk) – Comvita, which produces health products from manuka honey and olive leaves, lifted annual profit 3.3 percent as the rising cost of honey squeezed margins, and said revenue and earnings would grow in 2015.

Net profit rose to $7.6 million, or 24.37 cents per share, in the 12 months ended March 31 from $7.4 million, or 24.52 cents a year earlier, the Te Puke-based company said in a statement. That’s slightly ahead of the $7.5 million profit Comvita signalled earlier this month. Earnings before interest, tax, depreciation and amortisation rose 11 percent to $16.4 million and revenue gained by the same amount to $115.3 million.

“Margins were impacted by the very strong New Zealand dollar and from further sharp rises in the cost of Manuka honey,” the company said. “Because of contractual commitments on pricing in the fast growing China market these costs couldn’t be recovered within the annual time frame.” . . .

New president for Federated Farmers Waikato:

Federated Farmers is thrilled to welcome our new Waikato provincial president, Chris Lewis, who is replacing James Houghton following their provincial AGM.

“Chris has been a part of Federated Farmers for nine years and is well versed on the issues surrounding the Waikato region as well as the dairy industry at a national level,” says Bruce Wills, Federated Farmers National President.

“I would like to thank outgoing provincial president, James Houghton for his service to the province and Federated Farmers and congratulate him on his role on the Waikato Waipa Stakeholders Group, in continuing the collective conversation around water quality in Waikato.

“We are in a year of change within the Federation with leadership changes throughout the organisation, both nationally and provincially, Chris is an incredibly passionate advocate for the farming community and I know he will do a fantastic job,” said Mr Wills. . .

Shocking Sharemilker compliance revealed:

With just over a week until it closes, Federated Farmers is blowing the whistle on the four-fifths of Sharemilkers who are yet to vote in the 2014 DairyNZ Levy referendum.

“The last time I checked only 20 percent of sharemilkers had voted and that’s a shocker turn out,” says Neil Filer, Federated Farmers Sharemilkers section chairperson.

“It’s like seeing only 100 people physically in Eden Park for the upcoming England test.

“I need to send a rocket to our guys to pull finger and vote. We’re the ones that get the most from the levy as it sets up the best possible industry for us. . . .


Rural round-up

August 27, 2013

Salmonella kills hundreds of sheep:

Hundreds of sheep in Otago and Southland have died following an outbreak of Salmonella.

The bacteria causes pregnant ewes to abort their foetuses and may cause the death of the ewe.

The strain is salmonella brandenburg and it can be transferred to humans.

Clutha Vets veterinarian John Smart says about 30 farms are affected in the Balclutha area and he knows of others further south. . .

Wine industry looks ‘back to the future’:

Only 40 years ago, the first grapevines selected for the modern New Zealand wine industry were planted in Marlborough. This week more than 550 grape growers, winemakers and industry leaders will converge in Blenheim to attend the annual wine industry conference.

The Romeo Bragato conference is named after one of the early pioneers of the industry. The conference will be held in Blenheim at the Marlborough Convention Centre from 28-30 August.

New Zealand Winegrowers General Manager Research Dr Simon Hooker says that after a few challenging years the wine industry has regained a sense of confidence thanks to successful ventures into new markets and a stellar 2013 vintage. . .

Delegat’s post 62% gain in annual profit as value of vineyards, grapes increase – Tina Morrison:

 (BusinessDesk) – Delegat’s Group, the New Zealand winemaker which has been snapping up the distressed assets of rivals, posted a 62 percent gain in profit as it benefited from an increase in the value of its vineyards and grapes after a bigger grape harvest and higher prices.

Net income rose to $41.2 million in the year ended June 30 from $25.5 million the year earlier, Auckland-based Delegat’s said in a statement. The value of the company’s vineyards, grapes and financial derivatives rose $14.9 million, compared with a $100,000 writedown the year earlier. . .

Giesen increases focus on organics:

Giesen Wines is placing growing importance on its organic plantings, with 15% of its vineyards now converted or in transition.

The winery has has just released its second certified organic Sauvignon Blanc, Giesen Organic Marlborough Sauvignon Blanc 2012, following a highly successful launch last year.

Giesen Wines, privately owned by brothers Theo, Alex and Marcel Giesen, is one of New Zealand’s largest wineries. It owns 13 vineyards in Marlborough’s highly regarded Wairau Valley and this year celebrates the 30th vintage of its acclaimed Marlborough Sauvignon.

Marcel Giesen says the family is committed to environmentally sustainable wine production practice. . .


Rural round-up

December 5, 2012

TPP: Australia and New Zealand Agricultural Bodies Call For Action On Trade:

The peak agricultural bodies of New Zealand and Australia have united in calling for a truly comprehensive and generally liberalising Trans Pacific Partnership (TPP) agreement from day one of implementation.

Federated Farmers of New Zealand and the National Farmers’ Federation of Australia are both participating in the TPP negotiations, currently taking place in Auckland.

“Liberalisation must result in the elimination of all agricultural and food product tariffs and reform non-tariff measures,” says Bruce Wills, President of Federated Farmers of New Zealand. . .

NZ commodity prices post fourth month of gains, rising 1%:

New Zealand commodity prices rose for a fourth straight month in November, led by pelts, beef and wood pulp. Lamb prices fell to a 31-month low.

The ANZ Commodity Price Index rose 1 percent last month with 10 commodity prices gaining, four declining and three unchanged.

A firmer New Zealand dollar meant the gain in the ANZ NZD Commodity price Index was a slightly lower 0.9 percent. . .

Biological agriculture ‘joins the dots’ for farmers wanting more:

Listening to world renowned expert Arden Andersen talk on biological growing practices has helped many New Zealand farmers and growers “join the dots” to discover ways to grow healthier produce as well as improving their bottom lines.

American Dr Andersen will be back in New Zealand early in the New Year on a four-course speaking tour; two focusing on soils being held in Ashburton and Taupo, and two on human health in Havelock North and Auckland.

For John Kamp, a sheep, beef and dairy farmer in Mangleton, Hawke’s Bay, says attending the soils course not once but twice, has helped him totally change his farming approach for the 700 hectares he has direct control over. As a syndicate shareholder he has also influenced three South Island dairy farms to become biologically managed. . .

Delegat’s sees small lift in annual earnings, warns on strong currency:

Delegat’s Group is flagging a small increase in annual earnings for 2013, though it’s warning that the strong kiwi dollar is making life hard for the wine-maker.

The company forecasts operating profit of $27 million in the 12 months ending June 30, 2013, managing director Jim Delegat told shareholders in Auckland. That’s a 6 percent lift in earnings from 2012. The winemaker sees a 6 percent sales growth in 2013 to 1.97 million cases expected to sell at $119.10 a case.

“The group continues to actively manage its currency exposure, however currency movements have the potential to impact on earnings,” Delegat said. “With strong and sustainable competitive advantages in brands, distribution, supply and quality, the group is well-positioned to achieve its sales forecasts in the years ahead.” . . .

Agricultural R&D – a fantastic legacy and a means to move forward – Pasture Harmonies:

New Zealand, and its agriculture (systems) owes a heck of a lot to the billions of dollars poured into its research and development over the past 120 years.

Our wealth has, literally, been built on sunshine, soil and fresh air – and more importantly applied brains figuring out how to convert pastoral production into protein. (Actually, and to be fair, it is sunshine, soil and water – but that doesn’t work quite as well from a poetic or story POV).

For nearly a century, the ever refined pastoral method (essentially graze pasture, rest it, graze, rest…) has evolved to a quite elegant recipe. . .

Synlait posts $6.3M maiden profit, likely to seek more capital:

Powdered dairy products exporter Synlait Milk has turned in a maiden profit of $6.3 million for the year to July 31 and expects to seek fresh capital from its two shareholders as it pursues “further strongly profitable opportunities.”

The Dunsandel-based processor added a further 20 supplier farms during the year and processed a total of 498 million litres of milk in the year, compared with 343 million litres the year before, after adding a third drying unit, allowing it to manufacture higher-value nutritional products.

After failing to attract New Zealand investors to a $150 million initial public offering in 2009, Synlait Milk is now 51 percent-owned by the Chinese firm Bright Dairy, with the remainder held by Synlait Ltd, a vehicle representing the company’s founders. . .

Nominations close 16 December for top dairying woman award:

Women working in the dairy industry are being urged to get their nominations in for the 2013 Dairy Woman of the Year award, which closes for entry on 16 December 2012.

Sponsored by Fonterra, the prestigious award includes the chance to attend the year-long Women in Leadership course run by Global Women, worth $25,000.

Dairy Women’s Network chief executive Sarah Speight said the Dairy Woman of the Year award celebrates and advances women who are making a real difference in the dairy industry, in their dairying businesses and in their communities. . .

And from the Nutters Club:
Genius


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