Rural round-up

February 20, 2019

Fonterra wants many DIRA changes – Hugh Stringleman:

Fonterra wants to ditch the requirement for it to take all milk if its market share drops below 75% in a region.

It also wants to exclude big processors except Goodman Fielder from accessing its milk at the regulated raw milk price.

Instead it wants to introduce a 12c/kg handling fee, it says in its submission to the Primary Industries Ministry’s review of the Dairy Industry Restructuring Act.

All other processors should be required to publish their average milk price paid to farmers and details of how they set it, Fonterra said.

DIRA should evolve to cover the whole dairy industry and not just control Fonterra. . . 

Otago young farmers lay claim to two titles – Sally Rae:

Otago can lay claim to three new national champions – all in the rural sector. Luke Kane (30) and Isaac Johnston (25), from West Otago, won the national fencing competition held recently as part of the New Zealand Young Farmers conference.

Elizabeth Graham (21), who lives on her parents’ farm at Hindon, won the national stock-judging title. . .

Duck eggs hatch into growing business – Luke Chivers:

Taranaki duck farmers Dawn and Glen Bendall are earning a living out of making people, including themselves, healthier. Luke Chivers reports. 

It is 7.30am in deepest, darkest winter.

As daylight breaks on mountainous, coastal Taranaki Urenui duck farmer Dawn Bendall is preparing her children for school before fossicking around in wood shavings up to 25 centimetres deep to retrieve 400 eggs.

“The ducks will dig up, they’ll lay and then they will cover the egg up again.

“It’s their little way of not letting the vermin get to the egg so I don’t know what they think of me,” she says, laughing. . . 

Riparian planting cleans Waikato dairy farm river – Hunter Calder:

From above it looks like any other river.

But up close, the Marokopa River through Ruawai Farm in Te Anga is exceptionally clear.

Data collected by Waikato Regional Council shows the water quality is some of the best in the region.

The river rates particularly highly for macroinvertebrates – tiny creatures without backbones such as insects and worms. The more of those, the healthier the water. . . 

Bounce in deer numbers :

Farmed deer numbers, including the number of breeding hinds and fawns, increased in 2018 according to provisional agriculture census figures released by Statistics New Zealand.

This follows a small recovery in stag numbers in the 2017 census.

Deer Industry NZ (DINZ) chief executive Dan Coup says the trend is a strong indication of growing farmer confidence in the viability of deer in a drystock farming operation. . . 

Wrightson cleared to sell seeds business – Gavin Evans

(BusinessDesk) – PGG Wrightson has been cleared to sell its seeds business to Denmark’s DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said. . .

Trade deals with Africa would help continent grow – Marian L. Tupy :

In December 2018, Donald Trump approved a new strategy for Africa that includes increasing US commercial ties with the continent. According to the Wall Street Journal, Trump’s strategy “is part of a broader effort…to fight for global supremacy with Russia and China”. Geopolitical considerations aside, freer trade between the United States and Africa makes good economic sense that’s bound to become more obvious over time.

Today, the economy of sub-Saharan Africa (SSA) is small, accounting for some 2 per cent of global Gross Domestic Product (GDP). Between 1960 and 2017, SSA GDP grew from $252 billion to $1.75 trillion. The world economy grew from $11.3 trillion to $80 trillion (all figures are in 2010 US dollars). That amounts to an average annual compounded growth rate of about 3.4 per cent and 3.43 per cent respectively.

The United Nations estimates that over the next 50 years, the SSA and world populations will grow at average compounded annual rates of 2.05 per cent and 0.63 per cent respectively. SSA’s population will thus increase from 1.1 billion to 3.1 billion and the world’s population will increase from 7.7 billion to 10.6 billion. That means that SSA will account for roughly 30 per cent of the world’s population in 2070. . . 

Trace elements a solution close to home :

Despite New Zealand’s relatively benign climate lending itself so well to pastoral farming, its soils can hide some chronic mineral deficiencies that can undo the efforts of the best farm managers as they try to get the most out of their stock.

Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian is urging farmers to look harder at what may be holding their stock’s performance back, and says the answer may be easier to find than they first thought. . . 


Rural round-up

October 13, 2018

Grabbing life by the horns:

October 8th- 14th marks Mental Health Awareness Week. Co-op farmer Wayne Langford knows what it’s like to suffer from mental illness. He’s the man behind the YOLO (You Only Live Once) farmer blog. He shares his story about owning up to his illness and how the YOLO project helped him cope with depression.

I was pretty down in the dumps – I referred to it as a rough patch, my wife called it what it really was – depression. We were lying in bed one morning and she said, “well, what are we going to do? Because we can’t go on like this.”

Most people who knew Wayne Langford knew this about him. He was 34, married to his wife Tyler and the father of three boys. He was a 6th generation dairy farmer who owned and ran his Golden Bay farm. He was a proud Fonterra supplier and was the Federated Farmers Dairy Vice Chairman. . .

Farm produce holds up trade deal:

New Zealand trade negotiators are trying to get their European counterparts to recognise Kiwi agricultural exports are small-fry in comparison to the regional bloc’s farming sector.

The second round of free-trade negotiations between NZ and the European Union is under way in Wellington with 31 European officials in the capital to discuss a deal politicians say they’re keen to fast-track. . . 

Kaitiakitanga and technology benefiting farmers, environment:

An innovative approach to monitoring farm effluent runoff is reaping financial rewards for farmers with bonuses for farming excellence.

Miraka, a Taupo-based milk processor with more than 100 suppliers, is offering bonuses to farmers who meet the five criteria set out in its Te Ara Miraka Farming Excellence programme – people, the environment, animal welfare, milk quality and prosperity
. . .

Farmers build rapport amid Mycoplasma bovis heartache – Tracy Neal:

Despite the fact they are not out of the woods yet, cattle farmers are starting to consider life after Mycoplasma bovis.

Finding that pathway will be helped by a special Beyond Bovis seminar in Hamilton later this month – held in conjunction with the Waikato A&P Show.

The government is working to eradicate M bovis and so far more than 43,000 cows have been culled. . .

High country station to host agricultural workshops – Yvonne O’Hara:

There is a shortage of young people wishing to work in the agriculture sectors, and industry consultant John Bates, of Alexandra, is developing a programme to help address the problem.

Lincoln University owns Mt Grand, a 2127ha high country station near Lake Hawea.

Profits from the farm help fund postgraduate and graduate scholarships.

It is also a teaching facility for university students studying environmental and ecological degrees. . . 

 

PGG Wrightson expects FY19 operating earnings to match prior year’s record – Rebecca Howard:

(BusinessDesk) – PGG Wrightson expects full-year operating earnings to be on par with last year’s record, including earnings from the seed and grain business that it is selling to Danish cooperative DLF Seeds.

The company said it expects its operating earnings before interest, tax, depreciation and amortisation to June 30, will be approximately $70 million. In August, it said its operating ebitda was a record $70.2 million in the year ended June. . . 

Virgin beefing up for transtasman battle

Weeks out from its breakup with Air New Zealand, Virgin Australia says it ready to roll out its “full armoury” in what is shaping up as a three-way battle over the Tasman.

The Australian airline is also trying to establish more of a market presence here after being quiet for much of the alliance with Air New Zealand that stretched more than six years but will end on October 28 after the Kiwi carrier opted to quit the partnership.

Virgin has since upped its marketing and following a search for a New Zealand beef supplier the airline today announced Hinterland Foods from Moawhango in the Rangitikei District had won the “Got Beef” campaign and would supply its meat to the airline for in-flight meals. . . 


Rural round-up

October 4, 2018

NZ’s pig-headed rejection of GM is putting our agricultural future at risk – Andrew Allan:

Ignorance of the facts of genetic modification poses an economic risk to New Zealand, writes a professor of plant biology.

There is a new agricultural-based green revolution beginning around the world, and it’s a technique you’ve probably heard of before: gene editing. New types of rice, wheat, tomato, maize, soybean and other crops created through the CRISPR-Cas9 technology are already growing in fields in America and beyond. These enhanced products include wheat with a 30% increase in grain weight and tomatoes with a 5-fold increase in vitamin A levels. The issue however is that these crops rely on ‘directed’ changes to DNA, which we categorise as ‘genetic modification’ (GM) under NZ law. This is despite the fact that the changes made are exactly the same as that created by sunlight, and a lot less than that from traditional breeding. This categorisation makes it near-impossible for our country to join this green revolution. Worse still, the value we currently gain from our plant-based economy is under threat from far better crops being developed quickly around the world. . .

Sheep and beef farmers bullish about the future but watchful of challenging headwinds:

More than two thirds of sheep and beef farmers are positive about the future of the industry, according to research by Beef + Lamb New Zealand (B+LNZ).

Sixty-eight per cent of sheep and beef farmers surveyed in the August 2018 quarter are confident – the highest level since B+LNZ’s first launched the research in November 2010.

Sheep and beef farmers’ positive mood contrasts with gloomy headlines on business confidence elsewhere in the economy, as well as recent inaccurate claims made by the Productivity Commission about the “marginal” nature of the sector. . .

Using images to misinform – Alison Campbell:

The internet, while it can be a godsend if you need to find something out (gotta love google maps for directions), can also be a wretched hive of wrongness and misinformation.

That misinformation can take many forms, but when it comes to 1080 it’s clear that those opposed to NZ’s use of this chemical firmly believe that a picture is worth a thousand words. Any picture.

Thank goodness for the ‘reverse image search’ function in Google. For example, on the Facebook page for the group New Zealands not clean green, in amongst photos of animals that may or may not have been killed by 1080, we find several of animals that weren’t. For example: . .

More farmers turn to DNA parentage testing to improve productivity:

This spring, upwards of 250,000 calves from around the country will have their parentage confirmed by LIC’s DNA parentage service which operates from its laboratory in Hamilton. So far this year, the co-operative has had on average one new herd a day sign up to its DNA parentage service.

LIC’s General Manager of NZ Markets, Malcolm Ellis, says the increased demand reflects the industry’s new reality of “peak cow”. . .

Wrightson Seeds suitor DLF cites research capability, export growth –  Gavin Evans:

(BusinessDesk) – Danish producer DLF Seeds says its research capability makes it a strong potential acquirer of PGG Wrightson’s grains and seeds business. The firm is seeking clearance from the Commerce Commission for the $421 million purchase announced in August. . .

Silver Fern Farms Announce Winners of Plate to Pasture Youth Scholarships 2018:

Six inspirational young people from around New Zealand have been named as the Silver Fern Farms Plate to Pasture Youth Scholarships recipients for 2018. Each winner received $5000 to further their careers in the red meat sector. Silver Fern Farms Chief Executive Simon Limmer says he is delighted to see the passion young New Zealanders have shown for the red meat industry through the applications submitted to the annual scholarship programme.

   

Rural round-up

August 7, 2018

Wool gets revived as tide turns on synthetics’ pollution of the seas – Heather Chalmers:

A new wave of socially and environmentally-conscious consumers are turning to natural fibres for their clothing and homes, rejecting polluting synthetics and plastics.  

New Zealand wool companies are already tapping into this trend, promoting wool as a natural, biodegradable and renewable replacement.

But while momentum is growing, returns remain stubbornly low for the coarser end of New Zealand wool clip.   

While shoppers may think they have done their bit for the environment by ditching plastic bags, they are being advised to look at what they are wearing and how their house is carpeted, furnished and insulated.  . . 

 Wrightson shares jump 9.4% on plans to sell seeds unit for $439M; may distribute cash – Tina Morrison:

(BusinessDesk) – Shares in PGG Wrightson jumped as much as 9.4 percent after the country’s largest rural services business said it had agreed to sell its seed and grain business to Danish cooperative DLF Seeds for $421 million in cash and $18 of debt repayment, and signalled it may return up to $292 million to its shareholders.

The sale is above the $285 million book value of the seeds business and follows several expressions of interest received from international parties as part of a strategic review underway with Credit Suisse (Australia) and First NZ Capital. The Christchurch-based company expects to have a net cash balance of about $270 million following the sale and could distribute as much as $292 million to shareholders. . . 

A2 doubles stake in Synlait at 23% discount – Sophie Boot:

A2 Milk will buy another 8.2 percent of Synlait Milk, doubling its stake in the company.

The milk marketing firm will buy the shares at $10.90 apiece, down 2.3 percent from the NZX one month volume weighted average price of $11.16, for a total of $161.8 million. The shares will come from Tokyo-listed Mitsui & Co, a general trading company which invests across sectors and bought 8.4 percent of Synlait at the company’s initial public offering in 2013. . .

 

New Zealand red meat sector strongly opposes European Union and United Kingdom’s WTO quota proposal;

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports. . .

Trade outlook still bright, but not without challenges – Allan Barber:

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday.

Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole. Vitalis stated that three assumptions underpin New Zealand’s international trade negotiations: . . 

MPI sets the record straight with Forest & Bird:

Ministry For Primary Industries 2 August 2018 MPI is disappointed that Forest and Bird thinks it necessary to make inaccurate claims about combined efforts to prevent the spread of Kauri dieback.

Forest and Bird has advised MPI that it is closing off its reserves with wild kauri as a further measure to prevent the spread of kauri dieback, says Roger Smith, Head of Biosecurity New Zealand (a part of MPI). “We welcome all efforts to protect our kauri and have been working in partnership with a wide range of organisations to support their local efforts. . .

Tour leader found with fruit fly:

Fruit fly larvae carried by a tour party leader could have devastated New Zealand’s horticulture industry, says Biosecurity New Zealand.

Biosecurity officers intercepted the larvae last month in undeclared food with a holiday group from Malaysia at Auckland Airport, says Biosecurity New Zealand Passenger Manager, Craig Hughes.

The larvae was found in chillies following x-ray screening of the tour leader’s baggage. A caterpillar was also detected in some garlic bulbs carried with the undeclared food. . .

Rabobank Wine Quarterly Q3 2018: Status Quo Under Pressure in US Route-to-Market

The US has emerged as the largest wine market in the world, and by most measures, the most profitable and attractive. While wineries – both foreign and domestic – recognise the profit potential of the market, it is also widely seen as an exceptionally-difficult market to penetrate (particularly for small wineries), according to the latest RaboResearch Wine Quarterly report.

Route to the US consumer

Major changes are occurring today in how wine reaches the US consumer. “Changes in technology, business models and market structure are disrupting the global wine market and creating new sets of winners and losers among wholesalers, retailers and suppliers,” according to Stephen Rannekleiv, RaboResearch Global Strategist – Beverages. “Responding quickly to these changes will determine who survives, who thrives, and who fades away.” . .

Boy, 10, raises $60,000 in ‘Fiver for a farmer’ campaign – Shelley Ferguson:

More than $60,000 has been raised for drought-stricken farmers through a campaign started by children at a Sydney school last week.

Jack Berne, a grade four student at St John the Baptist Catholic School in Freshwater, was the instigator of “a fiver for a farmer”, and was inspired to help after learning about the struggles of those on the land in class.

Last week, Jack wrote a letter to media outlets as he tried to generate support for the cause after telling his mum that their teacher always tells them, “we can use our small and mighty voices” ..  . 


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