Rural round-up

Fonterra Plant Openings Celebrate Strength in Southern Dairying:

Fonterra has further highlighted its commitment to New Zealand’s dairying communities this week as the Co-operative officially opened four new plants across the South Island.

Ribbon cuttings have been held to celebrate successful opening seasons for the new mozzarella plant at Fonterra’s Clandeboye site near Timaru, along with three new plants at its southernmost site at Edendale.

Fonterra Managing Director Global Operations Robert Spurway said these expansions generate cash not only for the Co-operative’s 10,500 farmers but also help to bolster rural and regional economies. . . 

Another link added in Transforming the Dairy Value Chain:

Food Safety Minister Jo Goodhew today congratulated Fonterra on the opening of their new mozzarella plant at Fonterra’s Clandeboye site. The new plant will result in 25 new jobs and a doubling of Fonterra’s total mozzarella production to 50,000 metric tonnes per annum, over two plants.

The Primary Growth Partnership (PGP) programme “Transforming the Dairy Value Chain” helped Fonterra to commercialise their patented, breakthrough technology for producing frozen mozzarella cheese in a fraction of the usual time – without sacrificing functionality for their customers or sensory qualities for the end consumers. This technology will help to grow Fonterra’s Foodservice business in the $35 billion global pizza market.

“The Government has a goal of doubling the value of exports by 2025. Around half our exports are food, so our food safety systems are closely linked to this goal”, said Mrs Goodhew. . . 

“Put your hand up and ask for help”:

Stay away from negativity and don’t be afraid to ask for help are 2 tips that farmer Hannah Topless has for her counterparts around New Zealand.

Great swathes of Hannah’s 150ha Taranaki dairy and sheep farm in Strathmore, eastern Taranaki, were flooded or cut off in the storms of June 2015.

“We had 340ml of rain in one weekend,” said Hannah. “Rivers overflowed, taking out fences and gouging out races; and landslides took out culverts and fences, and cut off access to some of the farm.”

Hannah says that they were fortunate to have strong community links, particularly with her local church, as well as their Rural Support Trust, FMG and Federated Farmers. . . 

Returning Pacific workers an asset to NZ industry:

Pacific Island workers returning to New Zealand for seasonal employment have become an increasing asset for the horticulture and viticulture industries.

In New Zealand’s region of Hawke’s Bay, there’s an increased demand for Pacific workers contracted through the Recognised Seasonal Employer scheme.

The General Manager of Focus Contracting Ltd, Linley King, said the industries would not have grown as much as they had in the past decade without the involvement of Pacific islands workers. . . 

Avocado sector joins GIA Biosecurity partnership:

The avocado industry has become the seventh industry partner to join the Government Industry Agreement (GIA) biosecurity partnership today, Primary Industries Minister Nathan Guy has announced.

“It’s very pleasing to have the avocado industry on-board, working with the Ministry for Primary Industries and other industry partners to manage and respond to the most important biosecurity risks,” says Mr Guy.

Avocados are New Zealand’s third largest fresh fruit export. In the 2014-2015 season the industry produced 7.1 million trays of avocados worth around $135 million. . . 

MPI seeks submissions on proposed amendments to the Kiwifruit Export Regulations:

The Ministry for Primary Industries (MPI) is seeking feedback on proposals to amend the Kiwifruit Export Regulations 1999. The proposals are outlined in a discussion document released today.

“This is the first comprehensive review of the Regulations since they were enacted,” says Jarred Mair, MPI’s Acting Deputy Director-General Policy and Trade.

“The current regulations have enabled New Zealand’s kiwifruit industry to compete effectively on the international stage. In 2015, New Zealand exported kiwifruit to 50 countries, valued at $1.003 billion. . . 

Next Steps for Kiwifruit Industry Strategy Project (KISP):

 

The government’s consultation document supporting the Kiwifruit Industry Strategy Project has been released.

Public consultation is a standard regulatory process, giving stakeholders an opportunity to consider alternatives to the recommendations proposed by the Kiwifruit Industry Strategy Project Team.

NZKGI Chairman, Doug Brown, says the government consultation process is another step towards the implementation of the Kiwifruit Industry Strategy Project that the majority of kiwifruit growers overwhelmingly supported.

“We are very pleased the government has included all of the Kiwifruit Industry Strategy Project’s recommended options in their consultation document. I encourage all kiwifruit growers to read through the document and submit their feedback through the consultation process. . . .

Kiwifruit NZ welcomes regulations review:

The regulator of the kiwifruit industry, Kiwifruit New Zealand (KNZ), has welcomed the review of the Kiwifruit Export Regulations 1999 and the release of a discussion document by the Ministry for Primary Industries (MPI) today.

KNZ believes the regulations have served the industry well for 16 years but the New Zealand industry and the international fruit market are very different today than they were in 1999. . . 

Allied Farmers 1H profit falls as it focuses on livestock services growth – Sophie Boot:

(BusinessDesk) – Allied Farmers reported a 32 percent drop in first-half profit as income from its shrinking asset management services segment plunged, while its livestock services segment increased sales.

Net profit fell to $615,000 in the six months ended Dec. 31, from $907,000 a year earlier, the Hawera-based company said in a statement. Revenue rose 0.7 percent to $10.3 million.

“This is a strong operating result, benefiting from the livestock division’s trading performance, and does not have the benefit of the corporate and asset management one-off gains that bolstered the group result for the corresponding six months period ended Dec. 31, 2014,” said chairman Garry Bluett. “The directors now consider that the group is well placed to shift its primary focus to growth.” . . 

Rural round-up

Alliance in good shape, Donald says – Sally Rae:

He’s been sitting around the board table at Alliance Group for 24 years but Murray Donald has finally called time.

Come December 17 and the Southland farmer will be gone, as he is standing down as a supplier representative at the company’s annual meeting in Oamaru.

Mr Donald (54), who farms near Winton, and fellow long serving director Doug Brown, of Maheno, who was elected in 2001, have decided not to seek re election. . . 

Exit from EU could cripple UK agriculture – Allan Barber:

A new report by agricultural consultancy Agra Europe entitled Preparing for Brexit suggests leaving the EU, to be determined by a referendum in 2017, could destroy the British farming sector. The authors have based their forecast on the Coalition government’s 2013 Fresh Start Policy document which theorised that British agriculture could imitate New Zealand and Australia’s success in surviving, even flourishing, in a post-subsidy world.

Not surprisingly there is plenty of scepticism about the realistic prospect of either of these scenarios eventuating. If British voters chose the Brexit option, it is most unlikely any government would eliminate all subsidies, while a cursory glance at the proportion of farm income from EU Common Agricultural Policy payments shows how laughable it would be to expect them to become suddenly profitable. . . 

Contest continues to hold appeal – Sally Rae:

Chris Pemberton was just a lad when he competed in the Young Farmers Contest.

It was 2005 and, at 17, Mr Pemberton was one of the youngest regional finalists in the contest’s then 36-year history.

He was still at boarding school at St Kevin’s College when he competed in the Aorangi regional final.

While unplaced, he performed creditably and was a favourite with the crowd. . . 

Spaans new DairyNZ head – Stephen Bell:

Waikato dairy farmer Michael Spaans has been elected the new chairman of DairyNZ.

The industry-good body held a special meeting of the board this weekend.

Spaans will serve an annual term as chairman, leading an eight-member board made up of five farmer-elected and three independent directors.
He replaced long-serving chairman and former Cabinet minister John Luxton who retired from the DairyNZ board last month after 12 years of service on dairy industry bodies. . . 

Yashili New Zealand’s Pokeno factory opens – Gerald Piddock:

Yashili New Zealand Dairy Co has opened its new state-of-the-art infant formula manufacturing plant in Pokeno, south of Auckland.

The 30,000m2 plant will employ 85 staff and have an annual production capacity of about 52,000 tonnes of formula product. It will produce formula under the brand ‘Super Alpha-Golden Stage Infant Formula’ with shipments to China expected to begin in early 2016.

Yashili New Zealand is a leading producer of infant milk formula for the domestic market in China. It was founded in July 2012 and is a subsidiary of Yashili International Holdings and Mengniu Dairy Co.  The new factory took three years to build and cost $220 million. The company’s goals were to produce the highest quality infant formula and raise the healthiest babies in China. . . 

Yashili, Arla and Danone sign agreement – Gerald Piddock:

Yashili International along with European dairy producers Arla and Danone have entered into global strategic cooperation agreement.

Signed at the opening of Yashili’s new infant formula plant at Pokeno on November 6, the agreement will see the three companies work closer together in supplying products into Arla and Danone’s markets.

“It is a significant agreement between these two great dairy producers who are each committed to the highest standard of food quality and safety,” Yashili International Holdings president Lu Mingfang said. . . 

 

Rural round-up

Potential for more dairy exports to South East Asia:

A new government-commissioned report highlights the potential for the New Zealand dairy industry to increase its exports of consumer products into South East Asia.

New Zealand is already the largest supplier of milk powder to countries in the region and also has a strong share of the trade in most other dairy products.

But the report said growing demand offered plenty of opportunity for consumer-ready dairy products as well. . . 

More changes for Alliance leadership – Neal Wallace:

There is further change at the head of Alliance Group with two of the longest serving directors announcing their retirement.

Less than a year after chief executive Grant Cuff retired, directors Murray Donald and Doug Brown have announced they are also to retire, effective from December’s annual meeting.

That leaves chairman Murray Taggart as the only supplier representative with more than four years’ experience. . . 

Ravensdown caps fertiliser price:

Ravensdown – the fertiliser farmer co-operative – has capped the price of its superphosphate product to give farmers a firm number to budget with. 

Chief executive Greg Campbell said the product’s price will be fixed at $320 a tonne until the end of November.

Superphosphate is a fertiliser used on dairy, livestock and cropping farms.

Mr Campbell said the company’s balance sheet was in good health, which allowed it to delay any possible price rises.

He said this was a first for the company. . . 

Halfway mark in 2015 Sheepmeat and Beef Referendum:

One in five registered voters have cast their vote at the halfway mark in the 2015 Sheepmeat and Beef Levy Referendum.

Beef + Lamb New Zealand Chairman James Parsons said the turnout was pleasing and he was encouraging farmers to vote before the voting closes on September 10.

“It is important for farmers to have their say and ensure that the organisation has a strong mandate to continue its activities on behalf of farmers.”

By the end of this week farmers throughout the country will have had the opportunity to attend one of the 53 referendum information meetings being hosted by Beef + Lamb New Zealand Directors, the local farmers of the Beef + Lamb New Zealand Farmer Council and members of Beef + Lamb New Zealand’s senior management team. . . 

More crop insurance more problems? – Brad Wassink:

Helen Fessenden at the Richmond Fed recently published an informative article in Econ Focus on the history and development of the federal crop insurance program — and on why many are criticizing it.

Under the new farm bill, crop insurance is estimated to be nearly 20% more expensive than under the previous 2008 bill. It is expected to cost $41 billion over five years.

Some contend that the program should be viewed as a success. For one, its reach is nearly universal: 90% of farmland is covered. They claim that the substantial benefits provided by the program negate the need for one-off disaster relief packages — for damages caused by a natural disaster such as a hurricane or severe drought — that are often expensive and inefficient. The new crop insurance programs cover even more crops.

But as Fessenden notes, economists, taxpayer groups, and the GAO all point to the program’s core problem: . . 

Submissions sought on carbaryl, chlorpyrifos and diazinon reassessment:

The Environmental Protection Authority (EPA) welcomes submissions on its reassessment of some organophosphates and carbamates (OPCs). The reassessment will cover substances containing carbaryl, chlorpyrifos and diazinon used as active ingredients in veterinary medicines or in substances used as non-plant protection insecticides (in and around buildings, on hard surfaces, and in industrial situations).

This reassessment follows the EPA’s previous OPC reassessment in June 2013, which considered only OPCs that were used as insecticides for plant protection.

This reassessment application has been prepared by the staff of the EPA on behalf of the Chief Executive. It is being undertaken because of concerns about the safety and well-being of people and the environment resulting from the use of carbaryl, chlorpyrifos and diazinon. . . 

And with a hat tip to : Kiwiblog:

 

Rural round-up

Fish war on canals :

”Greedy” salmon anglers threatening to turn a salmon bonanza in the Waitaki hydro canals into a free-for-all are being accused of ignoring catch limits and using illegal methods to catch easy prey.

Following the release of 36,000 salmon smolt from the Mt Cook Alpine Salmon hatchery at Ohau 18 months ago, anglers have reported being able to hook a fish on every cast at some spots on the Tekapo and Ohau canals.

However, Central South Island Fish and Game field officer Graeme Hughes said the easy fishing had resulted in more people fishing illegally and ignoring the two-salmon quota. .  .

Tarras scheme reprieve – Rebecca Fox:

Potential irrigator Tarras Water Ltd has had a reprieve, but it has come with a stern warning from the Otago Regional Council.

The council voted 7-3 to overturn its own hearing panel’s recommendation not to amend the long-term plan to allow for investment in the irrigation scheme at a meeting in Dunedin yesterday. Instead, the ORC is proposing the amendment go ahead.

As the decision gives the council the option to invest in the scheme, a meeting will be held, possibly as early as next month, when councillors will make the decision whether to invest – with conditions attached – or not. . .

Cautious steps in goat milk expansion:

An Australasian goat milk company, CapriLac, is looking to expand “in a cautious way” in the Waikato.

Co-owner Rupert Soar said the family-owned company was advertising for goat farmers who were interested in selling their goat milk or leasing their operations to the company.

The company had received “quite a bit of interest”, and was following up leads, Soar said.

Farmers did not need to buy shares to get involved, as the company was not a co-operative. . .

Mining rights unlikely to affect farm sales – Terri Russell:

Solid Energy’s decision to sell farmland and keep mineral rights for mining would not turn away potential buyers, a Southland rural agent says.

About 1000 hectares of farmland near Mataura have been put on the market, and the mining giant plans to retain rights to lignite resources under the surface for about 30 years.

Last year, the company reviewed its land holdings after a drop in coal prices and a $40m loss for the year ending June 2012.

Southern Wide Real Estate director Philip Ryan said potential buyers would not be put-off if it were reserved for mining because about half of Southland had mineral rights. . .

A finalist but best still home – Gerald Piddock:

Doug and Jeannie Brown have made the final of the 2013 Glammies.

The North Otago farmers made the cut in the best of breed – traditional for one of his romney lambs grown on his farm at Maheno.

It was the third time they had entered the Golden Lamb Awards and the first time they have made the finals. This year four sheep were entered into the competition.

Their entry was one of 20 finalists which made the cut out of 180 entries from around the country. . . .

 

 

 

 

 

Rural round-up

Hairy mutant calves

Federated Farmers met with LIC on Tuesday to try to secure a solution that works for LIC’s farmer-shareholders and farmers affected by calf-mutation.

“I guess the best summary is that we spoke and they spoke,” says Willy Leferink, Federated Farmers Dairy chairperson.

“Our only hope is LIC may reflect on what we said over the next few days.  This is not about winners or losers because no one is winning right now. . .

Award-Winning Livestock Farmer Urges Others to Enter 2013 Ballance Farm Environment Awards:

Environmental sustainability is a hot topic for North Otago farmer Doug Brown.

As a councillor for the Otago Regional Council and a director of a large meat co-operative, he discusses the subject with a wide range of people from both urban and rural backgrounds. He also talks to consumers of NZ products who are demanding increasingly higher standards of environmental management and animal welfare.

He believes most farmers are committed to protecting their land-based resources.

“But we’ve got to keep working on these issues, and keep moving forward at a pace that farmers can handle.” . . .

New Chair for Dairy Awards Trust

The New Zealand Dairy Industry Awards Trust has a new chair, with former New Zealand Sharemilker of the Year, Teresa Moore, taking on the role.

Mrs Moore won the sharemilker competition in 2009 with husband Chris and the couple is now farming a 71ha 200-cow property at Te Puke in the Bay of Plenty.

“I’m looking forward to working with some great people on the Trust and in overseeing our role to ensure the Trust’s goals are implemented and that there is good communication between the Trust and the NZDIA Executive running the awards programme.” . . .

Reminder to TB test dairy service bulls

The Animal Health Board (AHB) reminds all traders and receiving herdowners that there is no fee for bovine tuberculosis (TB) testing of bulls aged over 12 months that are entering the dairy industry.

Commercial bull lessors should organise a TB test for bulls prior to marketing and leasing them to provide peace of mind to receiving herdowners.

Dairy farmers seeking assurance that the service bulls they are leasing are TB-free should insist on TB tests before accepting them onto their property, or at least ascertain that one has been completed in the past six months. . .

ORC sees sense on new HQ

The Otago Regional Council needs new headquarters and had looked at various options.

The one the majority of councillors appeared to favour was a modern design on the waterfront which was also the most expensive.

Counsellor Doug Brown went public with his concerns about that in an opinion piece in the ODT in February. His colleague Gerry Eckhoff  added his arguments against the plans last Thursday. Tuesday’s paper carried 11 letters to the editor supporting him.

Proponents of the project excused the expense by saying it would be paid for from reserves not rates. But those reserves have been built up from rates and using them for that project would have meant they wouldn’t be available for other projects which would then have to be funded from rates.

There is never a good time to impose additional costs on ratepayers. The uncertain financial environment and questions over the role of councils after the government’s review of local authorities make this an even worse time to take the most expensive option for new headquarters.

On Wednesday the majority of councillors realised this and parked the waterfront plans and agreed to reconsider all options.

Today’s ODT editorial credits the council for its restraint and suggests another, better option for the new HQ:

The front-running option, at this stage, ought to be Dunedin’s former chief post office, as long as it can be bought for a modest amount.

The building is bigger than the council needs, but it has potential and several advantages.

Converting old buildings isn’t a cheap or easy option.

But if it could be done for a reasonable price it would bring life back to a now disused historic building and also help reinvigorate Princess Street.