Rural round-up

August 22, 2019

600 farmers in big water project

Large-scale initiative in Southland expected to have big effect on water quality:

You could say it’s “ace” that more than 600 farmers and multiple agencies are working together to improve water quality in the Aparima catchment area in the deep south.

ACE – otherwise known as the Aparima Community Environment (ACE) project – is a farmer-led initiative in Southland aimed at over 600 farms spread over 207,000 hectares – with 81 per cent of that area developed. It has multi-agency participation with DairyNZ, Beef & Lamb and Environment Southland involved.

The ace thing about ACE, says DairyNZ’s strategy and investment leader for responsible dairying, Dr David Burger, is its enormous scale and the intent to support all land managers in good farming practice. It will also track what happens on every single farm in the six Aparima catchment groups – Pourakino, Lower Aparima, Orepuki, Mid Aparima, Upper Aparima and Waimatuku – and relate this to water quality downstream. . . 

Federated Farmers hails court ruling as a win for Rotorua community:

The voices of farmers in Rotorua, led by Federated Farmers, have been instrumental in the Environment Court’s rejection of Land Use Capability (LUC) as a tool for nitrogen allocation.

Federated Farmers, along with the Lake Rotorua Primary Producers Collective, has been fighting a proposal by Rotorua Lakes Council, forestry and others seeking to allocate nitrogen discharges using LUC methodology.  With evidence from member farmers in the catchment, as well as by engaging experts and consultants, Federated Farmers demonstrated the LUC proposal would fail farm businesses and their communities to the point of potential ruin, Feds environment spokesperson Chris Allen said.

“It would also have had a more uncertain environmental outcome than the original proposal  by Bay of Plenty Regional Council in Plan Change 10,” he said.

“We’re pleased the Court comprehensively rejected the LUC proposal that would have required nitrogen discharge reductions of 80% by dairy farmers and 40% by drystock farmers.  In contrast, the allocation for forestry would have increased six fold. This would have meant that most farmers would have had to lease back nitrogen (that had been transferred to forestry) in order to continue farming.” . . 

Forget about another share trading review – Sudesh Kissun:

Former Fonterra director Nicola Shadbolt says the recent collapse of a few dairy cooperatives should be blamed on their strategy, not their co-op structure.

She says the collapse of Australia’s biggest dairy co-op Murray Goulburn and the demise of Westland Milk co-op on the West Coast is not about their structure.

“It is governance, it is strategy. I mean for every two co-ops that fail there are about a thousand corporates… nobody says of the corporates that it’s their business model. But with co-ops it’s always their business model that is blamed.”

Shadbolt, a fierce proponent of the cooperative model, is aware of moves by some farmers and a few directors to return capital structure to the table. . .

Is there a future for OZ Fonterra as Fonterra’s finances unravel – Keith Woodford:

Fonterra’s announcement that it expects a loss of around $600 million or more for the year ended 31 July 2019 has big ramifications for Oz Fonterra.  With overseas-milk pools now lying outside the central focus of Fonterra’s new strategy, and with Fonterra seriously short of capital, the Australian-milk pool and associated processing assets look increasingly burdensome.

If Fonterra were to divest its Australian operations, then it would demonstrate that Fonterra really is retreating to be a New Zealand producer of New Zealand dairy ingredients. It would also reinforce the notion that consumer-branded products are now largely beyond its reach.

This strategic position is close to where Fonterra was in around 2006, when it decided that it was 50 years too late to take on the likes of Nestlé.  It did have both Australian and Chilean operations at that time but they were smaller than now. It also took on an initial shareholding in Chinese San Lu at that time, but essentially Fonterra saw itself as a New Zealand-based co-operative. . .

Agriculture fears it will be milked by EU free trade deal – Mike Foley:

Australia risks trading away hundreds of millions of dollars in agricultural earnings if it doesn’t negotiate significant concessions from the European Union.

That’s according to industry groups Australian Dairy Farmers and the National Farmers’ Federation, which warned Trade Minister Simon Birmingham the EU will have to reduce its onerous tariffs and import barriers to make a free trade agreement (FTA).

“There would be no point in doing the deal for Australian farmers if we can’t see a realistic and positive outcome from this FTA,” NFF president Tony Mahar said. . . 

Want to protect the planet? Eat more beef, not less – Patrick Holden:

If students and staff at Goldsmiths University really want to help the environment, they should end their ban on selling beef on campus. Far from being the bogeymen portrayed by environmental campaigners, sustainably farmed beef and dairy cattle are integral to maintaining our green and pleasant land, keeping our waterways free of chemicals and feeding our population in the most efficient manner possible.

Two thirds of UK farmland is under grass and in most cases cannot be used for other crops. The only responsible way to convert this into food is to feed it to cattle, which are capable of deriving 100 per cent of their nutrition from grass and therefore are more efficient on such land than chickens or pigs. Even on grassland where crops could be grown, ploughing it up to create arable farms would release huge amounts of carbon into the atmosphere and require the use of pesticides, herbicides and fertiliser, all of which can devastate biodiversity.

Cattle farming does not just help to maintain grassland – it also works to improve the sustainability of existing cropland.  . . 


Rural round-up

April 20, 2019

Better data will help us do a better job – Federated Farmers:

The Environment Aotearoa 2019 report released today will help all New Zealanders, not just farmers, identify the priorities for action.

But we can only manage what we have information on, Federated Farmers environment and water spokesperson Chris Allen says.

“Our message during the last central government election campaign, when various candidates and commentators were putting the boot into farmers for environmental impacts, was that all Kiwis were in this together. This new report underlines exactly that. . .

Irrigation sector committed to continuing to improve environmental practices:

IrrigationNZ says the recent Environment Aotearoa report highlights the need for farmers and growers to continue work underway to: improve practices on-farm and upskill farmers; invest in cutting edge technology; and implement Farm Environmental Plans to change the way water is used for production.

“In partnership with national and regional government, it’s essential we continue to research, trial and adopt new practices and technology,” says Ms Soal.

“It is critical that we recognise that water is a precious resource which is essential for primary production and regional resilience in the face of climate change and that we use it in a way that is environmentally responsible,” says IrigationNZ Elizabeth Soal. . .

Dairy committed to a better environment:

DairyNZ says today’s Environment Aotearoa 2019 report gives honest insight into New Zealand’s environment and where the opportunities lie for the dairy sector, particularly for water quality, biodiversity and climate change.

Strategic leader for DairyNZ’s environmental portfolio, Dr David Burger, said while the report shows the dairy sector has work to do, there is no doubt farmers are working hard to look after the environment – with significant work already undertaken over the last 10 years to improve environmental practices across New Zealand. . .

Living affects the environment – Neal Wallace:

Our way of life is putting the environment under pressure.

A report produced by the Ministry for the Environment and Statistics New Zealand with evidence and trends of what is happening to the environment highlights nine key issues.

It is based on a comparison with previous reports, analysis of more than 60 indicators and new methods.

It found native plants, animals and ecosystems are under threat, changes to land vegetation are degrading soil and water, farming is polluting our waterways and water use affects freshwater ecosystems.

Urban centres create environmental pollution with urban sprawl occupying the best soils and destroying native biodiversity, it said. . .

Water tax decision allows environmental improvements to be targeted:

IrrigationNZ says the government’s decision not to introduce a water tax in the near future is good news for all New Zealanders.

“The Tax Working Group proposed a nationwide tax on all water use including for hydroelectricity, household, business and agricultural use. That would have resulted in higher power and food prices for households and businesses and higher rates bills for everyone,” says IrrigationNZ Chief Executive Elizabeth Soal. . .

Wrightson gets OIO approval to sell seeds unit, still mulling size of return – Paul McBeth:

(BusinessDesk) – PGG Wrightson has cleared the final hurdle to sell its seeds division to DLF Seeds for $434 million after securing Overseas Investment Office approval, but still hasn’t figured out how much to return to shareholders.

Now the OIO has signed off on the transaction, the rural services company anticipates the deal to settle either this month or May. . .

Whio ducks make a comeback after predator programme :

A nationally vulnerable duck species is making a comeback following a programme to curb predators in Fiordland.

About 64 breeding whio have been found during surveying of a security site for the blue ducks.

Department of Conservation Senior Ranger Andrew Smart said extended trapping efforts and predator control enabled the whio to make a strong comeback. . .


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