Rural round-up

July 7, 2015

Is A2 milk about to leap forward? _ Keith Woodford:

Shares in The a2 Milk Company (coded as ATM on the NZX stock exchange) have increased from 48.5 cents on 29 May to 75 cents at 3 July. The market capitalisation has risen from $330 million to $495 million. Where the shares will go in the next few weeks is a journey into the unknown.

What is known is that some of the international big boys have been putting together a syndicate to purchase ATM (also listed jointly on the Australian exchange as A2M). The publicly announced parties are America’s Dean Foods and Australia’s Freedom Foods. But in the background are Australia’s Perich family, Australia’s Moxey family, and China’s New Hope agri-food conglomerate. And hovering nearby is Richard Liu from the rapidly growing Chinese online marketer JD.com. . .

Top Performing Sheep Farmers And Industry Leaders Celebrated:

Sheep farmers have celebrated the top performers in their industry at the Beef + Lamb New Zealand Sheep Industry Awards in Invercargill tonight.

This is the fourth year the awards have been held and Beef + Lamb New Zealand chief executive, Dr Scott Champion said the awards night was a wonderful way to showcase the sheep industry – a major contributor to the New Zealand economy.

“The industry has and continues to make huge progress – for instance, while the number of sheep has halved in the last 25 years, lamb production has only fallen by seven per cent. Improved genetics is part of this fabulous productivity improvement story and tonight’s winners are leading the way in sheep genetics.” . .

 

Marlborough Lines takes 80% stake in Yealands Wine for $89M – Suze Metherell:

(BusinessDesk) – Marlborough Lines has bought an 80 percent stake in Yealands Wine Group, New Zealand’s sixth-largest wine exporter, for $89 million.

The South Island electricity lines company took control from founder Peter Yealands, who wanted to keep the winery fully New Zealand owned, the companies said in a joint statement. Marlborough Lines is debt free and had realised $100 million in cash from investments which it wanted to reinvest locally.

“Opportunities to invest in the electricity industry are limited and this led to us looking to other options,” said Marlborough Lines managing director Ken Forrest. “We are satisfied that this will be a successful investment which will broaden our asset base for the benefit of the people of Marlborough.” . .

 

New phase for NAIT programme

July is the start of the next phase for OSPRI’s NAIT programme with the three-year exemption period for pre-NAIT cattle now over. This means that all cattle must be tagged and registered in the NAIT system, even if they are not leaving your property or were born before the NAIT programme launched in July 2012 (the transition period for deer ends on 1 March 2016).

Dr. Stu Hutchings, OSPRI Group Manager, says, “Our goal is to get everybody on board with NAIT so we can all reap the benefits of tighter TB control and continued access to export markets. The only way to make this happen is if farmers play their part and fulfil their NAIT obligations.” . . .

 

Fonterra Updates Progress of Its Business Review:

Fonterra Co-operative Group Limited today provided an update on the business review it announced in March this year.

Fonterra Chief Executive Theo Spierings said the purpose of the review is to ensure that Fonterra is best placed to respond to a rapidly changing global environment.

The initial phases had looked at the entire business in detail and had identified potential areas, including significant initiatives in procurement, business operations and working capital, where the Co-operative can unlock increased value for its owners. . .

 

Silver Fern Farms chief executive appointed to deer board:

Silver Fern Farms chief executive Dean Hamilton has been appointed to the Deer Industry New Zealand (DINZ) board for a three year term.

Mr Hamilton joined the board as a venison processor-appointee on 1 July, replacing Dr Andrew West at the end of Dr West’s three-year term.

Deer Industry New Zealand chair Andy Macfarlane welcomed Mr Hamilton.

“Silver Fern Farms is our largest venison processor and marketer and we are very pleased to now have a close connection to that company through Dean’s appointment. To have a leader of his calibre on the board will be an asset for DINZ and is a good signal of Silver Fern Farms’ commitment to the deer industry.” . . .


Rural round-up

February 27, 2015

TB testing reductions another step in eradicating the disease:

Farmers and OSPRI continue to make good progress in their fight against bovine tuberculosis (TB) as high risk areas are reduced.

More than 3190 herds across 937,100 hectares will benefit from reductions in both Movement Control Areas (MCA) and cattle and deer bovine tuberculosis (TB) tests from 1 March 2015.

Herds throughout parts of North Canterbury, Otago and Southland will no longer require pre-movement TB testing, but will continue to be tested annually.

Dunsdale dairy farmer Kelvin Brock is moving out of the Hokonui MCA. He said the progress made by OSPRI’s TBfree programme through movement restrictions and possum control has been particularly satisfying. . .

 

Beef and lamb environment plan approved :

Environment Canterbury has approved a farm environment plan template for the beef and lamb industry under the proposed Land & Water Regional Plan.

Acknowledging the quality of the template, Environment Canterbury chief executive Bill Bayfield said Beef + Lamb New Zealand had met all the requirements of Schedule 7 of the proposed plan.

“We hope the farm environment plans that come from this template are valuable both for farmers and for Beef + Lamb,” Bayfield said. . .

Tagged stock have added value – NAIT – Gerard Hutching:

The move towards tagging and registering all cattle and deer will be a significant boon to farmers and the New Zealand economy, says the agency administering the system.

Farmers have a deadline of July 1 this year to ensure all their cattle are tagged and registered. Deer will have to be up-to-date by March 2016.

Dr Stu Hutchings, head of the OSPRI’s National Animal Identification and Tracing (NAIT) scheme, said there were three main benefits of tagging: for biosecurity; food safety/market access; and farm management.

“The dairy sector thinks about biosecurity implications from a disease perspective such as foot and mouth, so for them it almost becomes an insurance policy,” he said. . .

Nation’s Top Lamb Finalists Announced:

The finalists of the 2015 Beef + Lamb New Zealand Golden Lamb Awards, aka the Glammies, have been announced.

Following stringent scientific testing, over 150 entries have been narrowed down to 20 in the search for the nation’s most tender and tasty lamb.

Carne Technologies General Manager, Nicola Simmons says the tests they run look at yield and the attributes which are relevant to the end product.

“We analyse each lamb leg entry using objective measurements for tenderness, colour and succulence as these are ultimately factors which affect the consumer’s eating experience,” says Nicola. . .

 

The evolution of Fonterra – Keith Woodford:

[This is the first of a series of five articles on Fonterra that I have been writing for the Fairfax NZ Sunday Star Times. This one was published on 1 February 2015.]

It is now a little more than 13 years since Fonterra was formed. In that time, all of the foundation directors have moved on. There have also been three Chief Executive officers (CEOs) and at least four Chief Financial Officers. None of the current top level management team that reports to the CEO were there at the start.

Fonterra itself is a very different company to those early days. It started off as a traditional co-operative, in which members owned shares in proportion to their production. These shares were purchased directly from the co-operative at a price which the co-operative determined. If a farmer ceased production, then the shares were sold back to the co-operative at the current buy/sell price as determined by Fonterra. Given that production and ownership were aligned, any apportionment between what was paid for the milk and what was paid as a dividend on invested capital, was of no material consequence. . .

Synlait Farms rebrands as Purata:

Synlait Farms – the former subsidiary business of Synlait Ltd – has rebranded as Purata.

With Latin and Maori origins meaning ‘clear, bright – like a beautiful morning,” Purata’s name reflects the company’s new vision post ownership change, says Purata CEO Juliet Maclean.

Accompanied by the tagline ‘Farming for Tomorrow’, the Purata brand embodies the company’s focus on innovation, sustainability and creativity.

Juliet Maclean says changing the brand name, tagline and colour palate will help Purata reinforce its separate identity since leaving parent company Synlait Ltd. . .

 

Positive forecast for PGG Wrightson – Alan Williams:

PGG Wrightson is forecasting a very solid increase in annual earnings after reporting its strongest interim result in seven years.

The after tax profit for the six months ended December 31 was $19.7 million, up from $13.4m in the same period a year earlier.

Though there were still several months of trading and the risk of lower farmer spending because of drought conditions, managing director Mark Dewdney said the group was now forecasting operating earnings (Ebitda) of between $62m and $68m for the full year to June 30, up from $58.7m last year. . .

A weather eye on the climate – Pete Mailler:

A FEW years ago my oldest daughter came home from school in a state of high agitation. I quizzed her on what was concerning her, to which she replied angrily that I was killing the polar bears.

Apparently she had learned at school that our collective continued use of petrol and diesel was causing global warming and this was threatening the bears. In her young mind this was interpreted as the fuel use on our farm was directly and singularly the cause of the problem.

“My agricultural science training compels me to rely on good science in forming my own opinion”

I was more than a little disgusted that climate activists were able to terrorise my daughter in such a way. However, as much as it pains me to say so, it did cause me to check my own assumptions and attitudes to climate change. . .

"Bales as far as the eye can see :-D<br /><br /><br /> #Baling #RounBales"


Rural round-up

May 7, 2014

Farmers ‘need to meet minimum standards’:

Farm employment issues will be high on the agenda at Dairy New Zealand’s farmers forum in Waikato on Wednesday and Thursday.

Dairy NZ is responding to farmers’ requests to provide some practical guidance following a recent survey by labour inspectors found most of the farms checked were breaking employment rules. Most of the breaches related to record-keeping.

The organisation, along with Federated Farmers, is seeking changes to the minimum wage order so farmers can average out their employee’s pay over a fortnight rather than a week. . .

Rural lending growth may slow after dairy-fuelled expansion – Tina Morrison:

(BusinessDesk) – New Zealand’s rural lending, which more than doubled to an all-time high of $50.6 billion in the past decade on dairy farm expansion, may slow as farmers use record milk payouts to reduce debt, spurred on by rising interest rates.

In the past 10 years to June 30, 2013, agricultural debt has risen mostly due to the dairy sector where lending has almost tripled to $32.4 billion. The surge in lending to the dairy industry far exceeds the $1.4 billion debt owed by sheep farmers and $1.2 billion accrued by beef cattle farmers, according to Reserve Bank figures.

Dairy sector lending has soared as farmers have invested in converting land to dairy farming to take advantage of high milk prices and the associated strong growth in farm land prices, the central bank said in its last Financial Stability report in November. Indebted dairy farmers will be weighing up using high dairy payouts to pay down debt or increase farm investment in anticipation of a positive outlook, it said. Since then, the bank has begun to raise interest rates, hiking the benchmark twice in as many months, and milk prices have weakened in response to increased production. . .

Passionate about the Perendale – Sally Rae:

Ask Duncan Smith why he has stuck with the Perendale breed and the answer is succinct.

”They are just so tough and they just don’t die,” Mr Smith, who farms Islay Downs, on the Pigroot, said.

Mr Smith and his wife Claire are among the four entrants in the Sir Geoffrey Peren Cup competition, judged on farm last month and held in conjunction with Perendale New Zealand’s national conference in Otago this week.

The winner will be announced during the conference. It was Mr Smith’s late father, Ross, who took up the Perendale breed in the late 1970s. He was a ”very staunch Perendale man”. . .

Breed event in Otago – Sally Rae:

More than 60 registrations from throughout New Zealand have been received for Perendale New Zealand’s national conference in Otago this week.

Planning for the annual event, which alternates between the North and South islands, began nearly a year ago. The conference begins on Thursday with registrations and a dinner.

On Friday, there is a bus tour to South Otago, visiting the Mitchell family’s Hillcrest stud at Clinton, and the Gardner family’s stud near Balclutha. There will also be a visit to AgResearch’s Invermay research centre, and to the Elders woolstore to view a wool competition. . . .

 

NAIT helping graziers keep up to date:

Farmers grazing stock this season can keep track of their animals by ensuring their NAIT records are up to date.

“It’s important to record all off-farm movements of stock to grazing blocks and confirm with NAIT when the animals arrive back on your property,” said Dr Stu Hutchings, OSPRI New Zealand Group Manager, Programme Design and Farm Operations.

“NAIT tags provide a unique identification number for each animal, which can help farmers verify that the same animals they sent for grazing are the ones they are getting back.” . .  .

Small-scale pest control still helps:

A study of rat poisoning in small forest blocks has shown that pest control on a small-scale can still provide a huge boost to native bird populations.

The six year study was carried out by Massey University researchers who analysed the effects of rat control in 19 blocks near Bennydale in the King Country.

It showed that small-scale control increased the number of North Island robins by 50 percent on average each year and also helped other species favoured by rats . . .

Federated Farmers initiative makes employing easy:

Federated Farmers has developed a New Employers Pack to help first time employers meet their employment obligations and develop better working relationships on farm.

“We want all employers to be able to put their best foot forward and this pack allows them to do that,” says Katie Milne, Federated Farmers Employment Spokesperson.

“The New Employers Pack is in response to an overwhelming demand for it from our members. In a member survey 97 percent wanted an employment pack produced. So Federated Farmers has created one, which helps farmers get it right from the very start, and that ticks all the boxes.

“As a farmer myself, I know farmers would prefer to know they are doing it right and understand what is required of them. This pack is designed for all farm types so I know all farmers will jump at this innovative employment pack. . . .

Rural Equities lifts stake in Tandou to 21% after rights issue:

Rural Equities, the farming group controlled by the Cushing family, has lifted its stake in Tandou after taking up its entitlement in the ASX-listed agribusiness’s three-for-eight rights offer.

Entities associated with Rural Equities now hold 21 percent, up from the 17.7 percent owned in August. Tandou’s offer at 47 Australian cents a share closed on April 28. Shareholders subscribed for about A$13.5 million of the A$25.2 million sought. Underwriter Petra Capital made up the shortfall of about A$11.7 million, placing the stock with institutions and professional investors.

Tandou shares last traded at 46.5 Australian cents on the ASX and have gained about 12 percent in the past year. They are rated a ‘strong buy’ based on two analysts polled by Reuters. . . .

Zabeel Mares Highlight NZB Broodmare Sale:

A prime opportunity for new players to enter the breeding game and for existing breeders to expand their portfolio is presented by New Zealand Bloodstock’s National Broodmare Sale, next week (13 May) at Karaka.

There are 209 broodmares catalogued for sale by leading damsires from New Zealand, Australia and further afield, in foal to proven and exciting young sires.

One of the highlights of the Sale will be the 12 broodmare entries by legendary sire Zabeel. The recently retired Cambridge Stud stallion is the damsire of 24 individual Group 1 winners including Dundeel (High Chaparral), Atlantic Jewel (Fastnet Rock),Silent Achiever (O’Reilly), Go Indy Go(Bernardini) and O’Marilyn (O’Reilly) this season. . . .


%d bloggers like this: