Rural round-up

13/09/2015

Winter won’t go – Neal Wallace:

An exceptionally cold winter and start to spring has created the most difficult farming conditions south Otago farmer Peter McNab has seen in 23 years.

There appears little respite.

Feed is short throughout much of Otago, Southland and on the West Coast with persistent rain, prompting the Ministry for Primary Industries to raise concerns West Coast livestock were struggling and to urge farmers to respond early. . . 

Taranaki farming flood victims still battling – Sue O’Dowd:

With their farm in ruins around them and unknown stock losses in the aftermath of the June flood, a Tututawa couple are focusing on the small things.

Sheep and beef farmers John and Philippa McBride have owned their 500-hectare property east of Stratford for for 38 years. 

With large stands of native trees, the farm has an effective area of 300ha of steep country and parcels of flats along the Mangaehu River. . . 

Fonterra, dairy farm debt a major concern for NZ economy, NZSA told – Fiona Rotherham:

(BusinessDesk) – The high level of debt carried by Fonterra Cooperative Group and dairy farms is a major concern for the New Zealand economy, said speakers at the annual Shareholders Association conference.

Paul Glass, director of Devon Funds Management, told the NZSA conference in Hamilton today that Fonterra, the world’s largest dairy exporter, had $7 billion of debt and less than $1 billion of earnings.

“Most banks will only lend three to four times earnings. Fonterra is very heavily indebted,” he said. . .

Farmers Encouraged To Enter Auckland Ballance Farm Environment Awards:

Entries have opened for the 2016 Auckland Ballance Farm Environment Awards and organisers have high hopes the region’s first year in the prestigious competition will be a huge success.

Mark Ball, newly appointed chairman of the Auckland Ballance Farm Environment Awards (BFEA), says all farmers, including orchardists, vegetable growers and viticulturists, are eligible to enter.

He says the competition enables entrants to benchmark themselves against their peers and receive valuable advice from expert judges on how to improve the sustainability of their operations. . . 

Eight new biosecurity detector dog teams for Auckland:

An energetic chocolate-brown pointer called Daisy is among eight new detector dog teams that have started at Auckland this week to sniff out biosecurity items carried by international travellers.

The new teams (handler and dog) finished their biosecurity detector dog training last week, along with three other new teams that have since started at Auckland and Wellington.

“The additional teams will provide extra detector dog power as we gear up for a busy summer – both in terms of passenger numbers and the heightened risk of fruit fly, due to outbreaks in Australia and other parts of the Pacific,” says Steve Gilbert, the Ministry for Primary Industry’s Border Clearance Services Director. . . 

Super biosecurity sniffer starts at Wellington:

A super-sniffing biosecurity detector dog started work at Wellington airport this week, says the Ministry for Primary Industries (MPI).

Meg, a beagle-labrador cross, and her handler Meggyn Bamford started in Wellington on Monday. They finished their training last week, along with 10 other biosecurity teams who have since started in Auckland and Christchurch.

The new team brings the number of detector dog teams patrolling the city’s international airport and port up to three. . . 

Show me the money – calculating $$ return on summer crops:

If it’s a choice between doing nothing with a poor paddock this spring, or sowing it in chicory or turnips, you’re better off cropping it.

With much higher DM yield and feed quality over summer, the crops can generate surprisingly good net returns compared with run out pasture.

A new summer crop calculator based on the $3.85/kg MS payout allows dairy farmers to work out their own return on investment from sowing chicory or turnips this season.

And provided they take steps to ensure a good crop, the bottom line still stacks up very well, according to the company behind the calculator. . . 

Countdown’s Champion Apprentice Butcher of the Year:

Countdown’s apprentice butcher, Hohepa Smith, has been named Competenz Butcher Apprentice of the Year at Auckland’s Shed 10.

The Awards, which have been held for the past 20 years, are run by Retail Meat New Zealand to find the most skilled butchers in the country.

Along with the champion title, Smith has won a $10,000 scholarship to be part of an international study tour of his choice, where he will add to his winning knife skills from world leading experts.

Hohepa Smith is thrilled with the result of his performance yesterday. . . 


More warning on danger of LabourGreen power play

01/11/2013

Meridian Energy’s partial float was given an initial thumbs up by analysts but they warn the share price is likely to be volatile heading into next year’s general election.

One fund manager said the difference in share price between Labour and National could be as much as 90 cents. . . 

Analysts agreed that day one of the float was successful and the closing share price was in line with expectations.

Devon Funds Management equity analyst Phillip Anderson said new investors would be pleased. “It’s enough for the new investors to be happy – they are feeling good about it – but not so much that it looks like the seller left a lot on the table.”

The general feeling among analysts was that institutions which had their share quotas scaled back had created strong demand for Meridian shares.

But the analysts warned that the general election could affect the share prices of both Meridian and Mighty River Power, which was partly privatised this year.

“My valuation for . . . [Meridian] as a whole is . . . around $1.10 if the Labour Party wins, but business as usual under National at around two bucks,” Anderson said. . .

That loss in value isn’t just for the wealthy for whom the left show no concern.

It is loss in value for ACC, Kiwi Saver accounts, the New Zealand Superfund, other pension and savings funds, and of course in the 51% of the company the state still owns.

The best way to keep the value up is to get National back into government.

The #gigatownoamaru campaign doesn’t hold political views.


Economic sabotage

24/04/2013

Ever since National came to power it has concentrated on making the economy stronger.

It is succeeding but more than a year away from the next election the spectre of a LabourGreen government is providing a hurricane force headwind.

The government has put a lot of effort into policies which encourage savings, investment and export-led growth and LabourGreen are sabotaging that.

The façade behind the Labour-Greens power plan is crumbling as it becomes clear their electricity nationalisation ‘plan’ is nothing more than deliberate economic sabotage for attempted political gain, Economic Development Minister Steven Joyce says.

“Comments made in recent days by Grant Robertson, David Parker, and Russel Norman show they don’t care about the damage to KiwiSaver accounts, mum and dad investors and the wider New Zealand economy,” Mr Joyce says.

“Financial analysts including JB Were, Woodward Partners, Milford Asset Management, First NZ Capital, Devon Funds Management and Forsyth Barr are unanimous in their condemnation. One has labelled it a ‘hand grenade’ to the New Zealand economy, while others have said it will cut the value of every New Zealanders’ KiwiSaver account and lead to rolling blackouts.

“Investment in new power generation would suffer as would wider investment in the New Zealand economy. The National-led Government is focused on attracting investment in new business and jobs for New Zealanders. Labour and the Greens would do the exact opposite.

“Kiwis are deeply suspicious about the Labour-Greens announcement and its timing. It’s simply economic sabotage.

“The great irony is that it’s clear the policy is not worth it for anybody. The last time that we had central planning of the power industry, prices went up faster. Labour’s own Cabinet paper in 2006 said it would push costs up.

“New Zealanders will see it for what it is: a cynical and selfish attempt by left-wing parties to play politics with the value of New Zealand’s economic assets.”

The market isn’t perfect but I’d rather put my faith in it than an army of expensive bureaucrats.

And I’d feel much happier investing in companies that weren’t going to be at risk from government interference.


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