Rural round-up

April 9, 2020

COVID-19: Farming focused on playing its part:

A week into the COVID-19 lockdown, DairyNZ says dairy farmers are settling into life in lockdown but the sector’s focus remains on ensuring support for farms.

DairyNZ chief executive Dr Tim Mackle said the Government support for farming as an essential service has been positive to date and is helping ensure all farms can be kept ticking.

“DairyNZ is working closely with dairy farmers and agri-partners to ensure all farming families, staff and support services are safe, and that farmers have access to the equipment, services and people they need,” said Dr Mackle.

“We all share concerns about the health and economic effects COVID-19 will have on our families, communities and New Zealand, and farmers are working hard to minimise risks to keep their businesses running smoothly. . . 

Milking shed projects stymied by lockdown rules – Rod Oram:

Dairy farmers trying to get ready for the new season are striking lockdown problems, writes Rod Oram

A farmer in Northland has a problem: his milk processor had condemned his milking shed; a new one was under construction; work has stopped because the Government has yet to classify such projects as essential; and precious time is being lost before the new milking season starts in July.

This is a real example playing out now, says Justin Thompson, DeLaval’s vice president of sales and support in Oceania. The Swedish-based company, which is one of the world’s largest suppliers of milking systems, is supplying equipment to the Northland project. But as soon as New Zealand went into Covid-19 lockdown, subcontractors packed up and left the site. . . 

Commodity prices continue to fall but offset by weakening dollar:

Commodity prices continue to fall as the impact of the Covid-19 virus continues to be felt on international markets, but the blow is being cushioned by a weaker New Zealand dollar.

The ANZ World Commodity Price index dropped 2.1 percent in March and has now fallen 8.3 percent in the past four months.

In local currency terms the index actually lifted 3.3 percent due to a sharp fall in the New Zealand dollar.

Dairy, meat and fibre, forestry and aluminium all fell, but horticulture remain unchanged. . .

Chair of Ballance Agri-Nutrients retires in September:

Ballance Agri-Nutrients Limited Chairman David Peacocke, is stepping down as a Director in September 2020 at the Annual Shareholders Meeting (ASM). Duncan Coull has been elected as the new Chair by the Board of Directors taking up the post after the ASM.

David a Waikato farmer and businessman has been a Ballance Director since 2005 and was elected as Chair in 2013.

“After 15 years, seven as Chair, this is a logical step in the Ballance board’s succession planning and I felt it was time to let someone else take up the challenge,” says David.

“Duncan is the right person to lead Ballance into our next phase , he brings a strong personal view that we need to work collaboratively as a sector to be future-ready.” . . 

Forestry industry preparing for back to work

Forest industry organisations are planning how to get back to work when restrictions on non-essential work are lifted for the industry.

Organisations, representing forest growers, transport, processing and contractors have set up a working group to develop risk assessment protocols in readiness for start-up of the industry sector.

The National Safety Director of the Forest Industry Safety Council, Fiona Ewing says the aim is to assure government that the sector will be able to comply with the epidemic management conditions of COVID-19. . . 

Update on 2020 Awards:

The New Zealand Dairy Industry Awards final four regional winners and placegetters have been announced via Facebook Live video and were warmly received by entrants, winners, sponsors and supporters.

The New Zealand dairy industry is resilient, flexible and adaptable to change. The New Zealand Dairy Industry Awards, adapting and leading with their response to the Covid19 crisis, can be seen as a reflection of the industry and all entrants.

Entrants, families, supporters and sponsors watched with excitement and anticipation in their bubbles. There were hundreds of live streams out numbering the usual attendance to the dinners. It was magical to see the live engagement and comments and likes floating up the screen during the announcements. . . 


Rural round-up

November 14, 2019

Saving us from ourselves – John Jackson:

The Government’s policy to reduce agricultural greenhouse gas emissions in New Zealand is working directly against the goals of the Paris Accord.

NZ’s pastoral farming is a low emissions process.

Studies published in the NZ Crown Research Institute (CRI) assessment of agricultural production systems the world over show NZ is “head and shoulders” above its competitors.

This goes well beyond our on farm production. With regard to NZ lamb sold in the UK, ocean shipping made up 5% of the final product’s carbon cost – voiding the belief that meat produced on this side of the world is environmentally unsustainable.  . .

Action groups motivate farmers – Richard Rennie:

Working together to gain access to high-level agriculture and business expertise is already leading to efficiency gains for a group of Hawke’s Bay farmers, rural consultant Sean Bennett says.

Bennett facilitates two Red Meat Profit Partnership action groups and is working with farmers to set up several more. 

The RMPP action network supports small groups of seven to nine farm businesses working together to explore ideas and share expert resources to help make positive on-farm changes. Kick-start funding of $4000 a farm is pooled to fund facilitation and expertise. . .

Independent dairy companies offer farmers an attractive option – Gerard Hutching:

Ask a New Zealander to name a dairy company and the one they are certain to come up with is Fonterra.

But beyond that, many would be stumped for an answer. There are in fact at least a score of independents, processing 18 per cent of New Zealand milk, a share that has steadily increased over the 18 years Fonterra has been in existence.

Open Country Dairy (OCD) farmer supplier Chris Lewis speaks for many when he says farmers opt for an independent over Fonterra because it’s an easier way to get ahead. . . 

He’s just mad about saffron – Nigel Malthus:

“I always reckoned you could make a living off 10 acres,” says Canterbury saffron grower Geoff Slater.

“I think if you get the right products you definitely can.”

For Slater and his wife Jude, their 10-acre (4ha) slice of paradise at Eyrewell, north of the Waimakariri River, is where they are building a multi-faceted business trading under the Canterbury Saffron banner. . .

Council role review a priority – Neal Wallace:

New Fonterra Shareholders’ Council chairman James Barron promises a review of the council’s role will be completed by the co-operative’s next annual meeting.

The council’s priority will be a review of its role while contributing to discussion on the co-operative’s capital structure and new strategy.

Barron is a fourth-generation farmer milking 450 cows on the 140ha dairy farm he grew up on, on the banks of the Waihou River south of Matamata.

He replaces Duncan Coull who has retired after four and a half years. . . 

Artisan cheesemakers unite – Catherine Donnelly:

An excerpt from ‘Ending the War on Artisan Cheese,’ a new book that exposes government actions that limit food choice under the guise of food safety.

Over the past 35 years, the US Food and Drug Administration has pushed for a mandatory requirement for the use of pasteurized milk in cheesemaking, claiming a public health risk for raw milk cheese. This scenario is playing out abroad as well, where creameries are collapsing because they can’t comply with EU health ordinances. In her new book, Ending the War on Artisan Cheese (Chelsea Green Publishing, November 2019), Catherine Donnelly defends traditional cheesemaking and exposes overreaching government actions that limit food choice under the guise of food safety. The following excerpt explains how the loss of artisan cheese is tantamount to the loss of culture. 

American artisan cheese has become mainstream, providing big business for retailers such as Whole Foods, Costco, Wegmans, Murray’s Cheese (now owned by Kroger), and others. Despite the success enjoyed by US artisan cheesemakers and the meteoric rise of artisan cheese production, the American artisan cheese industry faces an existential threat: regulatory overreach. . . 


Rural round-up

March 21, 2019

Shareholders say sale was inevitable – Brendon McMahon:

The possible sale of Westland Milk Products to China is a ”sad day” for the West Coast but necessary to save the business, a sample of farmer-shareholders said yesterday.

The Hokitika dairy co-operative, praised for years for retaining its independence in the face of Fonterra amalgamations, is poised to be sold to the Chinese dairy giant Yili.

Harihari dairy farmer and former board member Jon Sullivan greeted the news yesterday morning with ”she’s gone”.

Farmers had been left with ”no choice” but to sell, he said. . . 

Fonterra Announces 2019 Interim Results And Updates on Its Portfolio And Strategic Reviews:

Fonterra Co-operative Group Limited today announced its 2019 Interim Results which show the Co-op has returned to profitability with a Net Profit After Tax (NPAT) of $80 million, but normalised Earnings Before Interest and Tax (EBIT) are down 29% on the same period last year to $323 million.

• Key numbers in Interim Results
o Sales volumes 10.7 billion liquid milk equivalents (LME), up 2%
o Revenue $9.7 billion, down 1%
o Normalised EBIT: $323 million, down 29%
o NPAT: $80 million, up 123%
o Total normalised gross margin: $1.5 billion
Ingredients Gross Margin: $791 million, down 9%
Consumer and Foodservice Gross Margin: $766 million, down 7%
o Full year forecast earnings: 15-25 cents per share
o Forecast Farmgate Milk Price: $6.30-$6.60 per kgMS
• Sales process started for Fonterra’s 50% share of DFE Pharma
• Completed the sale of Corporacion Inlaca to Mirona
• Update on full strategy review . . 

Fonterra to hit debt reduction target from asset sales – Paul McBeth:

 (BusinessDesk) – Fonterra Cooperative Group expects to slice $800 million from its debt ledger through the sale of assets already signalled for the block.

The world’s biggest dairy exporter is strengthening its balance sheet as part of its wider strategic review. That’s included the divestment of a range of assets no longer deemed central to the cooperative’s future, the latest of which was a 50 percent stake in DFE Pharma – a joint venture with FrieslandCampina which supplies bulking agents, or excipients, in medicines including tablets and inhalers.

Fonterra has already announced plans to sell ice-cream maker Tip Top, with investment bank First NZ Capital receiving final bids earlier this month. It’s also considering its options for its 18.8 percent stake in Beingmate Baby & Child Food. . . 

Comforting news for dairy farmers as companies report results and the world price rises again – Point of Order:

Encouraging signs emerged this week that key elements in the structure of NZ’s largest export industry are whipping themselves back into the shape they should be.

The giant  co-op  Fonterra  has  gone back  into the  black  with a net profit of $80 million in the  first half,  after previously recording  a  net  loss of  $186m.

Meanwhile Westland Milk Products, NZ’s second biggest dairy co-op, is in line to be  sold  to China’s biggest  dairy company,  Yili,  in  a $588m  transaction that would inject nearly half a million  dollars into the operations of  each  of its  suppliers. . . 

Fonterra’s culture change– Craig Hickman:

Is it just me or is Fonterra undergoing a remarkably rapid culture shift in a very short space of time?

Last year I attended the Ashburton leg of the Fonterra Financial Results Roadshow: quite apart from the delicious lunch and sneak preview of the new Whittaker’s ice cream, it was a chance to hear then interim-CEO Miles Hurrell  and new board chair John Monaghan deal with the unpleasant reality of Fonterra’s first ever financial loss.

Miles especially came across as humble, honest and realistic, and those are attributes in direct contrast to the brash and overly optimistic Fonterra leadership we are used to seeing.  . . 

Interim Results support the need for fundamental change :

The Fonterra Shareholders’ Council supports today’s acknowledgement that fundamental change is needed to improve the performance of the Co-operative.

“Fonterra’s farmer shareholders will agree that the results announced today are not where they should be,” says Council Chairman Duncan Coull. “The Shareholders’ Council backs the Board and Management’s initiative to thoroughly review strategy. A well defined and executed strategy focused on our farmers’ milk is critical to maintaining sustainable returns and an enduring co-operative for generations to come.” . . 

Significant investment in major growth projects for Synlait:

– NPAT half year profit of $37.3 million
– Re-confirmed guidance for canned infant formula volumes of 41,000 – 45,000 MT
– Manufacturing efficiencies have supported improved production and sales volumes
– Key growth projects including Synlait Pokeno and our Advanced Liquid Dairy Packaging Facility remain on track
– New growth opportunities in liquid milk, Talbot Forest Cheese and lactoferrin expansion
– New purpose ‘Doing Milk Differently for a Healthier World’ established. . . 

Hyslop elected to Beef + Lamb directorship – Sally Rae:

Irrigation New Zealand chairwoman Nicky Hyslop has ousted sitting Beef + Lamb New Zealand director Bill Wright.

She beat Mr Wright, a Cave farmer, by a margin of 1808 votes in the recent Central South Island director election.

Mrs Hyslop and her husband Jonty farm Levels Estate, an intensive sheep, beef and arable property on the outskirts of Timaru.

Mr Wright was elected in 2016, having previously been chairman of the B+LNZ Central South Island Farmer Council for six years. . . 

Urban-fringe kiwifruit orchard with growth potential placed on the market for sale:

One of closest commercial kiwifruit orchards to Auckland’s urban boundary – with potential to treble its production capacity – been placed on the market for sale.

Known as MacLachlan Orchard, the 12.2-hectare property at 90 Mullins Road in Ardmore is planted on flat land, and is forecast to produce some 42,000 trays of fruit in the current season.

The orchard’s 3.3 canopy hectares of productive land comprises some 2.29-canopy hectares of the Hayward green kiwifruit variety and 1.07 canopy hectares of the G3 gold kiwifruit strain picked off vines which were grafted some six years ago. . . 


Rural round-up

February 23, 2019

Rural sector gives thumbs down to capital gains tax – Jamie Gray:

The rural sector has given an unequivocal thumbs down to the Tax Working Group’s recommendation to bring in an comprehensive capital gains tax.

The group has recommended the Government implement a capital gains tax – and use the money gained to lower the personal tax rate and to target polluters.

The suggested capital gains tax (CGT) would cover assets such as land, shares, investment properties, business assets and intellectual property. . . 

Fonterra farmers frustrated with DIRA – Hugh Stringleman:

The Fonterra Shareholders’ Council has called for an end to open entry to the co-operative and a clear path to dairy industry deregulation.

In its submission to the Ministry of Primary Industries review of the Dairy Industry Restructuring Act the council also called for an end to access to regulated milk by other export processors.

Goodman Fielder should be entitled to buy Fonterra milk for domestic purposes only, the submissions said.

Council chairman Duncan Coull also called for all other dairy companies to be required to publish their milk prices in a standardised form. . . 

Wool levy vote welcomed, but clear plan preferred – Ken Muir:

While farmers and industry leaders welcomed news that the Federated Farmers Meat and Wool Council voted last week to support a compulsory wool levy on wool producers, there was a clear preference for any such levy to be applied on the context of a robust business plan.

”We’ve had lots of different levies over the years for the industry and at the end of the day farmers saw very little return,” Waikoikoi farmer Blair Robertson said.

”Going forward we have to make sure the money gets to where it needs to be – marketing and promoting wool products to end customers.”

He said in the past bureaucracies had grown around the sector which chewed through millions of dollars while providing very little in return. . . 

Sexist comments on job ad damage New Zealand’s image, farmers warn – Esther Taunton:

Sexist responses to a backpacker’s job ad are a blow to New Zealand’s image and to an industry already struggling to find good workers, farmers warn.

Finnish traveller Mari Vahanen advertised on a farming Facebook page, saying she was a hardworking farmhand or machine operator.

The post received 1600 responses, but most of them focused on Vahanen’s appearance rather than her employment prospects.

Tararua dairy farmer Micha Johansen said the comments were a bad look for New Zealand’s agricultural sector and the country in general.  . .

Waikato farmers encouraged to plant trees to protect stock from summer heat – Kelly Tantau:

With temperatures soaring above 30 degrees in Matamata-Piako, a thought can be spared for the district’s livestock.

Cows prefer cooler weather, Federated Farmers Waikato president Andrew McGiven said, but farmers are doing well in ensuring their stock is protected during the summer season.

“Animal welfare and animal husbandry is probably the number one thing, because that’s what is earning you your income, so protecting and looking after them, but also looking after staff as well,” he said. . . 

Ninety seven A&P shows beckon – Yvonne O’Hara:

Geoff Smith attends as many A&P shows as he can during the season and there are 97 of them.

In his third year as the New Zealand Royal Agricultural Society’s (RAS) president, he spends time finding ways to ensure the shows remain relevant to their communities, as well as building relationships with other rural and civic organisations.

He is in Central Otago this week to go to the Mt Benger, Central Otago and Maniototo shows, as well as attending the society’s southern district executive meeting in Tapanui on Sunday. . . 

NZ company helping write global cannabis industry standards:

Ruatoria-based Hikurangi Cannabis Company has been in Rome this week participating in an international standards setting meeting for the cannabis industry. The meeting included recommended changes to the way cannabis is defined in both legal and scientific terms.

ASTM International, a global industry standards body with 30,000 members worldwide representing more than 20 industry sectors held a workshop in Rome under its technical committee D37 on Cannabis. The group of 600 industry experts are working to develop standards for cannabis products testing and production processes across the globe.

The group aims to meet the needs of the legal cannabis industry by addressing quality and safety issues through the development of classifications, specifications, test methods, practices, and guides for cultivation, manufacturing, quality assurance, laboratory considerations, packaging, and security. . . 


Rural round-up

November 27, 2018

Only two left for new Fonterra vote – Hugh Stringleman:

John Nicholls of Canterbury and Jamie Tuuta of Taranaki and Wellington will contest the rerun of the Fonterra director election to fill the one remaining vacancy.

One-term director Ashley Waugh has decided not to run again though he came within a whisker of being re-elected in the first round of voting.

Fonterra Shareholders’ Council chairman Duncan Coull sent an email to all farmer-shareholders explaining the rerun process and the council’s reasons for not opening it up to new candidates.

The rerun was necessary because only two of five candidates for three seats received the required 50% approval of farmers, Peter McBride at 80% and Leonie Guiney at 63%.

Waugh got 49%, Nicholls 44% and Tuuta 40%. . . 

Dairy-farm price per hectare plunges – Sally Rae:

Farm sales across the country for the year to October were down more than 10%, while dairy farm  per-hectare prices have pulled back almost 30% during the past year.

In Otago and Southland, there was strong activity in finishing, grazing and arable properties, but dairy farm purchases in both provinces were affected, with restricted supply of capital.

Real Estate Institute of New Zealand rural spokesman Brian Peacocke said for the three months to October there were 263 sales, just two more than a year ago.

Across the country for the year to October 1475 farms were sold, a 10.5% decline on the same period last year. Dairy farm sales were down 7.7%, grazing farms fell 5.6%, finishing was down 13.2% and there were 22.5% fewer arable farms. . . 

Genetic changes will allow merino sheep come down from the mountains – Heather Chalmers:

Synonymous with the South Island high country, merino sheep may be farmed more widely as farmers are lured by high fine wool prices and genetic improvements. 

Merino woolgrower Bill Sutherland, of Benmore Station near Omarama, said it was boom times for the New Zealand merino industry. 

“In a time when strong wool prices are at a historical low, the prices for merino wool have rarely been better,” he told the New Zealand Grassland Association conference in Twizel.  . . 

New boss hears farmers:

Farmers delivered a stern message to new director-general of primary industries Ray Smith at a meeting in Ashburton on Wednesday – they want to be top of his list.

He attended the meeting, facilitated by Mid Canterbury Federated Farmers in response to desperate calls for help from local farmers affected by the cattle disease Mycoplasma bovi, off his own bat.

Farming leaders from across the country including national dairy chairman Chris Lewis and meat and wool chairman Miles Anderson also attended the closed session.

“This meeting was organised so these national leaders could hear from affected farmers and get their stories straight from the horse’s mouth,” Mid Canterbury dairy chairman Chris Ford said. . . 

Interest in competition suggests promising future for agriculture – Sally Rae:

McKenzie Smith grasps every opportunity to learn new skills.

Mckenzie (17), a year 13 pupil at Southland Girls’ High School, is chairwoman of the school’s TeenAg club.

TeenAg — which comes under the umbrella of New Zealand Young Farmers — is aimed  at introducing and promoting a positive picture of agriculture and agricultural careers to pupils from an early age. The club has organised an AgriKidsNZ competition at Southland Girls’ High School on Thursday, for years 7-8 pupils, and team numbers have more than doubled from last year. . . 

Jersey cows eat differently – Abby Bauer:

Each dairy cattle breed has its perks and its quirks, and Jerseys are no exception. On our Hoard’s Dairyman Farm, we certainly notice differences in personality and behavior between our Jerseys and Guernseys.

These breed differences are what led the American Jersey Cattle Association and National All Jersey Inc. to partner with university and industry experts to create a webinar series focused on the Jersey breed. One of their webinar topics was feeding the lactating cow, and the presenters were Bill Weiss and Maurice Eastridge from The Ohio State University.

The pair of professors pointed out that much of the research in the field of nutrition has been done on Holsteins. While many of these recommendations can fit other breeds, there are a few ways that Jerseys are unique. . .

 


Rural round-up

November 19, 2018

The sky’s the limit –  Andrew Stewart::

Intergenerational knowledge has long been a sort of secret ingredient to success in sheep and beef farming in New Zealand. Though that component was vital in the early years of Tom and Sarah Wells farming careers they are also using their passion, drive and determination to forge their own brand of sustainably farmed products. Andrew Stewart reports.

Both Tom and Sarah Wells used to work in completely non farm careers. 

Sarah was a television journalist covering breaking news in a time poor, mentally draining role. 

“I grew up mustering with my father on horseback on the station and I wanted to be a shepherd right through school but somehow lost my way,” she said.

“But there was always a pull back towards the farm.” . . 

 

Farmer tells hearing of importance of irrigation -Mark Price:

The complexities of farming with irrigation in the Lindis and Ardgour valleys of the Upper Clutha were spelled out at an Environment Court hearing in Cromwell this week.

Bruce Jolly, who owns 3000ha “Ardgour” farm, which has 160ha of irrigated land, was the final witness before the hearing was adjourned until January 28.

After seven days of evidence from hydrologists, ecologists and specialists on trout, Judge Jon Jackson ended the hearing a day earlier than planned, admitting in a light-hearted moment, he was somewhat “overwhelmed” and needed a day to reflect on what he had heard.

The Otago Fish & Game Council is arguing 900litres per second of water flowing in the river is required to sustain the brown trout population, while the Lindis Catchment Group (LCG) considers 550litres per second is necessary to sustain irrigation systems. . . 

Council ruminating on re-run rules :

The Fonterra Shareholders’ Council is working on the rules for the next election to fill the vacancy on the board that resulted from the incomplete 2018 director election.

Council chairman Duncan Coull said there is a range of scenarios and potentially the second election will not be held until early next year.

The constitution gives discretionary powers over the election procedure to the council and therefore the possibilities are quite wide-ranging, he said.

In the meantime, the board can appoint an interim director but not be one of the three unsuccessful candidates – Ashley Waugh, Jamie Tuuta and John Nicholls. . . 

Tahi Ngātahi enters the workplace:

Federated Farmers is pleased to see a new safety initiative made accessible for the wool industry workforce.

Education is key to improving most aspects of someone’s life, says Federated Farmers national president Katie Milne.

With that attitude in mind it is great to see the successful launch of health and safety programme Tahi Ngātahi at the New Zealand Agricultural Show today, she says. . . 

Sanford’s move up the value chain overcomes climatic vicissitudes –  Jenny Ruth:

 (BusinessDesk) – Sanford says annual earnings fell short of its expectations due to “challenging” climatic conditions leading to a decline in harvest volumes.

However, that impact was more than compensated for by the company’s efforts to extract more value from both its wild and farmed fish and seafood and its underlying earnings rose 1.5 percent.

The fishing company lifted net profit 12.9 percent for the year ended September to $42.3 million, but that was largely driven by an insurance settlement for damage caused to its Havelock mussel processing facility by the Kaikoura earthquake in November 2016. . . 

Te Wera forest agreements secures growth for Taranaki :

China Forestry Group NZ (CFGNZ) is once again backing local wood processing with a ground-breaking agreement on harvesting and processing wood from Taranaki’s largest forest.

China Forestry Group NZ and Taranakipine sawmill in New Plymouth have signed a supply agreement today that supports long term wood processing in New Plymouth and employment for the 170 workers at Taranakipine. It’s another initiative that demonstrates China Forestry Group NZ’s ongoing commitment to New Zealand. . . 

Apple and stonefruit industry members pleased relationship between MPI and US facility now heading in the right direction, but it is just the start for MPI :

The nursery and fruit-growing companies at the heart of the legal action against MPI over seized apple and stonefruit plants and plant material have been working hard to facilitate the rebuilding of the relationship between MPI and the USA-based Clean Plant Centre North West (CPCNW).

Overnight last night at the CPCNW facility in Prosser, Washington, representatives from MPI held their first face-to-face meeting with members of the CPCNW since a discontinued audit in March. . . 

B+LNZ calls for director nominations for annual meeting:

Beef + Lamb New Zealand (B+LNZ) today announced nominations have opened for two B+LNZ director roles and one position on its Directors’ Independent Remuneration Committee (DIRC).

Under the requirements of the B+LNZ constitution, two electoral district directors and one existing DIRC member retire by rotation at the Annual Meeting. . . 


Rural round-up

September 21, 2018

2019 Zanda McDonald Award shortlist announced: 

Six young agriculture professionals from both sides of the Tasman have been announced for the prestigious badge of honour for the primary industry, the Zanda McDonald Award.

Now in its fifth year, the award recognises innovative young professionals in agriculture from across Australasia. Five Australians and one New Zealander have been selected as finalists for the 2019 award based on their passion for agriculture, strong leadership skills, and their vision for the primary industry.

The shortlist is made up by Australians Alice Mabin 32, owner of Alice Mabin Pty Ltd in Linthorpe Queensland, Harry Kelly, 26, Manager of Mooramook Pastoral Co. in Caramut Victoria, Luke Evans, 28, Station Manager of Cleveland Agriculture in Tennant Creek Northern Territory, Nick Boshammer, 30, Director of NBG Holdings Pty Ltd in Chinchilla Queensland, and Shannon Landmark, 27, Co-ordinator of the Northern Genomics Project of the University of Queensland. Kiwi Grant McNaughton, 34, Managing Director of McNaughton Farms in Oamaru, North Otago rounds off the six. . . 

Kiwi farmers take on growing South American super food – Catherine Groenestein:

Growing Taranaki’s first commercial crop of quinoa was challenge enough, but finding a combine harvester in a district devoted to dairying proved tougher.

Luckily for Hamish and Kate Dunlop of Hāwera, they found someone who owns the only suitable machine in the region living just down the road.

The couple’s journey into growing a crop native to South America on their sheep and beef farm began with a discussion about whether quinoa, a food the health-conscious family was already familiar with, would grow in South Taranaki, Kate said. . .

 The grass on the far side of the fence will look much greener for Fonterra farmers – Point of Order:

It  must have felt  like  salt being rubbed into  their  financial wounds   for Fonterra’s farmer-shareholders, when Synlait  Milk this week  reported  its  net profit  soared  89%  to  $74.6m.   Fonterra’s  mob   saw  their  co-op  notch  up  a  loss of  $196m, and  with prices  at GDT auctions trending down,  they may also have to accept a trim  to the forecast milk price.

Where  Fonterra  talks of   slimming its  portfolio,  Synlait  is still investing  in expansion.

In the latest year Synlait has been working on new and expanded plants in Dunsandel, Auckland and Pokeno as well as a research and development centre in Palmerston North. . .

Much more mozzarella – Chris Tobin:

Cutting-edge technology used in Fonterra’s new mozzarella line at its Clandeboye plant is the first of its kind in the world, and being kept under wraps.

”It’s the result of years of investment into R&D and hard work at the Fonterra Research and Development Centre,” Clandeboye cheese plant manager Chris Turner said.

”The work has been supported in part by the Primary Growth Partnership between the Government, Fonterra and Dairy NZ.

”Other than that we can’t tell you too much more. . .

Fonterra steers clear of consultants after paying millions to McKinseys – Nikki Mandow:

(BusinessDesk) – Fonterra Cooperative Group will not use external consultants for its newly-announced everything-on-the-table asset review, the dairy processor says. This follows allegations it paid up to $100 million a year between 2015 and 2017 to global consultancy giant McKinsey as part of its “Velocity” cost-cutting and restructuring programme.

It also forked out millions of dollars in CEO and other staff bonuses as part of its Velocity Leadership Incentive scheme. . .

Balle and Coull to join Ballance Agri-Nutrients Board

Ballance Agri-Nutrients’ shareholders have chosen Dacey Balle and Duncan Coull from an unprecedented field of 19 candidates to join the Co-operative’s Board, representing the North Island.

Murray Taggart, who retired by rotation this year, was unopposed in the South Island Ward and re-elected to the Board – while the decisions of Gray Baldwin to not seek re-election and Donna Smit to step down in the North Island Ward, opened a rare opportunity to secure a governance role with a leading rural business. . .


Rural round-up

September 14, 2018

Fonterra loss could be opportunity for change – Andrew McRrae:

Dairy farmers are hoping the massive financial hit taken by Fonterra will be used as an opportunity to reset the business for the future.

The dairy cooperative delivered a net loss of $196 million for the year ended July, after being hit by compensation payouts and investment write downs.

Revenue rose 6 percent to $20.4 billion.

Orini farmer Allan Crouch said even though a loss had been signalled, it was still very disappointing, especially compared to the $734m profit the year before. . .

Fonterra ponders Beingmate future as part of strategic review – Nikki Mandow:

(BusinessDesk) – Fonterra is looking at whether it should get rid of its disastrous Beingmate investment as part of an ‘everything up for grabs’ strategic review.

Speaking as the company announced the first full-year loss in its 18-year history, chairman John Monaghan said the company was doing a “full stocktake and portfolio review looking at all our major investments, assets and joint ventures to see how they are performing and where they fit with our strategy”. Beingmate was a key investment under the spotlight. . .

Co-op must do better:

The Chairman of Fonterra’s Shareholders’ Council Duncan Coull has said he is extremely disappointed with the Co-op’s 2018 Annual Results.

“There’s no denying that our farmers are unhappy with current performance, and this year’s results,” he said.

“The underlying result and its impact on earnings, dividend and carrying value is totally unacceptable and one that our farming families will not want to see repeated. Moving forward, it is imperative that our business builds confidence through achievable targets and at levels that support a higher carrying value of our farmers’ investment. . .

A thoroughly modern-day forward-thinking farmer – Pat Deavoll:

If ever there was the epitome of a thoroughly modern-day Kiwi farmer, the new Federated Farmers South Canterbury president would be it.

Jason Grant does it all. He owns and manages two dairy operations and a 1000 hectare dry stock farm, is a director of an irrigation company, an active member of two river catchment groups, a husband to Anna and father to Ruby (11), Oscar (12) and Wills (13), and of course, in his Federated Farmers role, an advocate for the local farming fraternity.

That he has a lot on his plate is an understatement. He says his life is “pretty full.” . . .

Farmers deserve recognition for their hard milk slog – Lyn Webster:

We are living in fantasy land where many people seem to think money grows on trees.

Well, it bloody well doesn’t!

Warning: I am grumpy because I have just lost my job due to impeding farm sale – more on that later.

About 25 per cent of New Zealand’s overseas revenue is generated by dairy farming, which is done by about 36,000 people.  That’s not many people to bring in a huge chunk of the country’s income.  

When the payout drops, which can happen overnight, it can affect your dairy farming business very badly very quickly.  Milk prices are volatile, sensitive to international demand and currency changes. Farmers put their seasonal plans in place, including stock numbers and a budget – if the milk price plummets, you pretty well have to suck it up because you haven’t got much wiggle room. . .

Funds run dry for beekeeper working to eliminate deadly parasite – Maja Burry:

A West Coast beekeeper says his bees are resistant to the varroa mite but that decades worth of work may be lost unless he can urgently pull together enough money to keep his business running.

Varroa mites infest bee hives, feeding on larvae and an infected hive usually dies within three or four years.

Westport beekeeper Gary Jeffery said he wanted to eliminate the parasite by distributing mite-resistant queen bees that he has bred around New Zealand. . .

Fonterra changes vindicated– Hugh Stringleman:

The calibre of new directors and nominees for the Fonterra board vindicates the governance changes and the downsizing of the board and outweighs the initial loss of experience, departing director Nicola Shadbolt says.

Her decision not to seek a fourth three-year term is in accordance with the guideline of nine years as the optimum and 12 years as the maximum.

The three candidates for vacancies around the board table announced last Monday are one-term sitting director Ashley Waugh along with Jamie Tuuta and Peter McBride. . .

Deer market doing well – Ashleigh Martin:

The deer market is achieving well at the moment, New Zealand Deer Farmers Association chairman John Somerville says.

“Venison prices are the best they’ve ever been and the velvet has been really stable for six or more years with some really good pricing.

“We’re hoping for slow steady growth of the deer market


Rural round-up

August 11, 2018

Our farmed meat is a green food – Neal Wallace:

Exporters are not shy in promoting New Zealand red meat as grass-fed and free-range but recent studies by Oxford and Otago Universities have lumped our system in with feedlots to claim the industry is environmentally degrading and unsustainable. Neal Wallace investigates the true environmental impact of grass-fed beef.

Work to differentiate the environmental footprint of New Zealand’s pasture-based red meat sector from feedlot systems that have a far greater impact has begun.

Beef + Lamb NZ chief insight officer Jeremy Baker said NZ grass-fed, free-range beef has been included in international studies that claim beef production is a major contributor to climate change. . . 

Fonterra fund units drop to 3-year low as investors grow dark on capital structure – Paul McBeth:

Aug. 10 (BusinessDesk) – Fonterra Shareholders’ Fund units, which gives outside investors exposure to Fonterra Cooperative Group, fell to a three-year low after the latest dividend downgrade added to scepticism about the efficacy of the cooperative’s structure.

The units dropped 2.7 percent to $4.97, adding to a 20 percent slide so far this year, and fell as low as $4.95, a level not seen since September 2015 when Fonterra was hit by a slump in global dairy prices and offered interest-free loans to its farmer shareholders to tide . . 

Fonterra announcement disappointing, definitive plan of action required:

Duncan Coull, Chairman of the Fonterra Shareholders’ Council, has expressed his absolute disappointment with today’s Board decision to reduce the 2017/18 forecast Farmgate Milk Price by five cents to $6.70 per kg/MS in order to support the balance sheet, and the decision to retain more of the Co-op’s earnings which will likely see no further dividend payment to Shareholders over the 10 cents distributed earlier in the year.

Mr Coull: “I can understand the Board’s rationale and that it is prudent to protect the balance sheet, but the fact that we find ourselves in this situation is unacceptable. . .

Fonterra’s credit rating safe but Shareholders’ Council labels payout cut ‘unacceptable‘ – Rebecca Howard:

(BusinessDesk) – S&P Global Ratings said there is no immediate impact on its rating on Fonterra Cooperative Group from the group’s lower farmgate milk price and dividend guidance for the year ended July 31, issued this morning.

However, the Fonterra Shareholders’ Council expressed deep disappointment, saying “the fact that we find ourselves in this situation is unacceptable” and took the unusual step of questioning the cooperative’s value creation record at a time when a new chief executive is being sought and the chairmanship has unexpectedly changed. . . 

Three Rivers catchment group catch up in Southland – Nicole Sharp:

Southland farmers are leading the way in environmental practices and 17 catchment groups are now established in the region. With six more in the wings, and half the region covered, reporter Nicole Sharp looks into some of the achievements to date.

When a group of farmers put their minds to it, anything is possible.

That is how the catchment group idea started in 2013, when some farmers in the Balfour area formed a group. . . 

Canterbury woman Ash-Leigh Campbell elected new chair of NZ Young Farmers Board:

A woman is at the helm of the NZ Young Farmers Board for the first time in 12 years.

Ash-Leigh Campbell was elected chair of the eight-member board yesterday, replacing Jason Te Brake.

The 27-year-old is a technical farm manager with Ngāi Tahu and helps oversee the management of eight dairy farms.

“I feel extremely privileged to be elected chair. I’m really looking forward to the role,” said Ash-Leigh. . .

Cereal yields down but growers remain positive:

Total hectares sown in wheat and barley this season is predicted to decrease by around 8%, but growers are positive about future prospects, Federated Farmers Arable Chairperson Karen Williams says.

Results from the Arable Industry Marketing Initiative (AIMI) July 1 Cereal Survey are out and confirm average yields are down compared to last season. Milling and feed wheat yields were down 12%, malting barley down 9%, feed barley down 10%, milling oats down 17% and feed oats down 6%.

“This is no surprise and reflects variable growing conditions (hot, dry, wet, cold) throughout the key crop establishment periods in late spring and early summer,” Karen says. . . 

Major international agritech announcement expected for NZ

In less than a fortnight, more than 30 New Zealand agritech leaders will make history in Silicon Valley.

They will be part of the international 2018 Silicon Valley agritech immersion programme and Conference, involving Silicon Valley Forum, Tauranga’s Wharf42, Agritech New Zealand, Callaghan Innovation, and New Zealand Trade and Enterprise.

Agritech New Zealand executive director Peter Wren-Hilton says the four-year-old Silicon Valley agritech connection will have a significant and long-term impact on New Zealand’s emerging agritech sector. . . 

Kerrygold butter is being taken to court over ‘false’ grass-fed cows claim – Katie Grant:

Customer can’t believe it’s not butter made from exclusively grass-fed cows

The company behind Kerrygold butter is facing legal action for advertising its products as being made from the milk of grass-fed cows.

A US customer has taken umbrage with the butter maker, hitting it with a class action lawsuit claiming that Kerrygold has “misled” consumers, leaving them “unable to exercise their right to choose grass-fed products”.

Kerrygold cow diet Kerrygold cows are fed grass, but not exclusively – they also eat various grains such as soy and corn at certain times of the year, according to Dyami Myers-Taylor, the customer in question. . .


Rural round-up

May 26, 2018

Waikato farmer reveals his farm first in the region to get Mycoplasma bovis cattle disease – Gerald Piddock:

Henk Smit has come forward as the Waikato dairy farmer whose herd has tested positive for Mycoplasma bovis.

Smit walked up to the stage and put his hand up during a meeting attended by close to 600 farmers at the Sir Don Rowlands Centre near Cambridge.

He outlined how the cattle disease arrived on his farm and his frustrations with dealing with the Ministry for Primary Industries.

Smit has farming interests in three properties around Waikato including the dairy farm that tested positive for M bovis. . .

Good clearance at online sale – Alan Williams:

About 96% of the wool offered in the first Natural Fibre Exchange (NFX) online auction was sold.

Indications are the sale was in line with the improving tone in wool prices at the latest open-cry auctions.

Six sellers provided lots for sale and a good cross-section of New Zealand’s major wool buyers were bidding online for the 1525 bales offered on May 22, Wools of NZ chief executive Rosstan Mazey said. . .

Performing as a co-op should – Neal Wallace:

Fonterra gets a pass mark from industry observers for its performance as a co-operatively-owned business.

But they warn it cannot rest on its laurels given challenges connecting with 10,500 owners and plans for further investment in added-value and consumer products.

Fonterra Shareholder’s Council chairman Duncan Coull said Fonterra has performed as a co-operative should. It is owned and democratically controlled by members, it serves its members, returns surpluses to members and strives to operate profitably. . .

Fonterra approach farmes to switch from WMP – Brendon McMahon:

Fonterra has again approached Westland Milk Products suppliers to switch loyalties with the promise of better returns.

The West Coast Federated Farmers annual general meeting in Greymouth this week heard that Westland suppliers from Inchbonnie and Rotomanu in the south and Springs Junction in the north, were being courted by the country’s largest dairy co-operative, which has a massive milk powder factory at Darfield.

Fonterra scouts were on the West Coast several years ago, but at that time few local farmers were tempted. . . 

STRESS removes headache for hill country farmers:

Taranaki farmer Roger Pearce is confident he’s hit a good formula allowing him to make a successful living in the eastern Taranaki hillcountry without bringing nature’s wrath on himself.

…or indeed a wrath on the communities and farms all the way down to the sea.

He’s tapped into the South Taranaki and Regional Erosion Support Scheme (STRESS) to allow him to reap more of the potential of his 2000ha Waitōtara Valley property – while ensuring its soil does not erode into waterways where it degrades water quality and heightens the risk of downstream flooding. . .

Australian milk production up 3.5%

Australian milk production to the end of April is up 3.5 per cent on the same time last year, according to the latest figures from Dairy Australia.

The figures reveal April production was up 4.5 per cent compared with last year, with increases in all states except Queensland.

Tasmania led the growth with production up 19.6 per cent for April, followed by South Australia, where production was up 8.6 per cent. . .


Dairy following failed example of meat industry

March 14, 2018

Have we reached peak dairy factory?

The number of dairy factories sprouting in Waikato has got to the stage that farmers are concerned the industry has reached a tipping point.

They fear further growth could lead to overcapacity – too many milk processing sites – and dairying will follow the path of the meat industry, which over the past decade has been plagued by plant closures and job losses. . .

Fonterra Shareholder’s Council chairman and Waikato farmer Duncan Coull​ says it is becoming a national issue for the industry. It is bigger than Fonterra and an industry-wide discussion is needed to find a way to save it from itself.

“Do farmers really want to reach that tipping point because once that tipping point is reached, there is no turning back. We need to start asking ourselves the question as farmers what we want the industry to look like going forward.

“If farmers continue to allow capacity to be built and continued to supply that capacity, be very careful what we wish for, we are another red meat sector waiting to happen and we are another Australian dairy industry waiting to happen.” . . 

Farmers like some competition but it the meat industry found out at great cost – in money and human terms – that it is possible to have too much competition.

Synlait chief executive John Penno​ says the dairy industry is already at overcapacity and the vast bulk of the processing technology built in recent years has been large-scale milk powder plants producing dairy commodities.

“There’s no question in my mind that overcapacity across the industry exists. But the real question is, is it the right capacity? What is the total capacity is the wrong question.”

Synlait does not operate in that market and builds plants focusing on high-end, value-added products. . ..

Farmers are free to choose which company they supply.

A new one might look attractive, especially if it doesn’t require suppliers to buy shares.

But the lesson from the meat industry is that more competition isn’t always better for farmers or the industry.


Rural round-up

September 22, 2016

The P epidemic has reached Waikato farms – Chris Lewis:

Federated Farmers runs an 0800 helpline for members, which is a popular way our members get value out of their subscriptions. Increasingly we are getting member calls around drugs and alcohol and advice on how to address this growing issue.

We’ve previously provided advice to farmers who have had multiple houses contaminated with P and even advice to a farmer for an entire workforce that tested positive for drugs. Some of the common questions being asked include: If I don’t have a drug and alcohol policy, how do I go about testing my staff? And, am I insured for my houses and business?

So what are our rights as employers? Should you turn a blind eye so your cows get milked? It is time to directly answer some of the questions, and for you to get answers from experts who work in this field. . . 

SFF ‘unleashed’ by assent – Dene Mackenzie:

Silver Fern Farms would be a ”company unleashed” now approval for Shanghai Maling to buy 50% of the Dunedin meat processor had been confirmed, SFF chairman Rob Hewett said yesterday.

After months of debate and some opposition from dissenting shareholders, Shanghai Maling received approval yesterday to inject $261million into SFF and take a 50% share.

The decision was never in doubt, although the Overseas Investment Office process was a ”black box”, Mr Hewett said in an interview. . . 

Govt defends Wairarapa water grant:

A Wairarapa irrigation system which didn’t stack up economically still got taxpayer cash from the Ministry for Primary Industries, says a damning study commissioned by Fish & Game.

But MPI is standing by its decision and says the report is flawed.

Fish & Game has released an independent analysis of the Wairarapa Water scheme’s successful application for $821,500 from MPI’s Irrigation Acceleration Fund for stage 2 of the scheme, which aims to irrigate 30,000ha.

The 2014 application was based on a long run farmgate milk price of $7.07 per kg of milksolids, which was questionable, and that 55 percent of the irrigated land would quickly be converted to dairy, says author Peter Fraser, of Ropere Consulting. . . 

Strong 2015/16 Profit Result for Fonterra, Encouraging Milk Price Signals Ahead for Fonterra Farmers

Fonterra Shareholders’ Council Chairman, Duncan Coull, said Fonterra’s recording of its highest ever EBIT, which resulted in Fonterra Farmers receiving a 60% increase on the earning per share received last season, was a positive result in an otherwise challenging environment.

Mr Coull: “The final payout of $4.30 for a fully shared-up Farmer is reflective of the very tough season we have endured.

“However, it is encouraging to see that Fonterra, assisted by the low Milk Price environment, has further driven volume into value and captured efficiency gains which have cumulated into a strong dividend while also serving to strengthen our Co-operative’s balance sheet. . .

Self-resetting rat traps 20 times better than standard traps -study:

Self-resetting rat traps are 20 times more effective at killing the pests than standard traps, a new study has shown.

The project – conducted by Bay of Plenty Polytechnic student Chantal Lillas – compared the amount of rats killed by self-resetting traps over a 10-day period last month, compared to the single-action traps more commonly used.

The self resetting traps were developed by the company Goodnature in collaboration with the Department to Conservation, and could reset up to 24 times before it needed to be reloaded. . . 

Zespri Board announces succession planning for new CEO:

The Board of Directors of Zespri will start a search process next year to select a new Chief Executive Officer. The succession is being planned with a view to having the new CEO in place by the beginning of 2018.

The current CEO Lain Jager, who was appointed Zespri CEO in December 2008, will remain in the role until the new CEO starts.

Zespri Chairman Peter McBride says the Board is balancing continuity and renewal in the leadership of the organisation. “The Zespri Board has set out a process for succession at an optimal time. The timeframe helps to ensure continuity through this transition, which is important given Zespri’s critical role in the value chain for kiwifruit growers and customers globally.” . . 

NZ Merino lifts annual profit 19%, meets growth targets – Tina Morrison:

Sept. 21 (BusinessDesk) – New Zealand Merino Co, a wool marketer that aims to develop higher-value markets for sheep products, posted a 19 percent lift in annual profit and said its business has doubled in value over the past three years.

Profit rose to $2.7 million in the year ended June 30, from $2.3 million a year earlier, according to the Christchurch-based company’s 2016 annual report. Revenue rose 4.9 percent to $114.7 million, while cost of sales gained 5.7 percent to $104 million. It will pay its more than 500 growers a total dividend of $1.36 million, up from $1.1 million the previous year and in line with its policy of returning 50 percent of profit to shareholders. . . 

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Don’t complain about a farmer with your mouth full.


Rural round-up

January 28, 2016

Rural to benefit:

Rural fire chief Mike Grant hopes the intentions outlined in Fire Service reform documents become reality.  

Grant, the principal rural fire officer for the Southern Rural Fire Authority, said much of the detail was unknown because it had still to be discussed by Cabinet but there was a consistent message on how the new management entity should operate in the review document, submissions and analysis. . . 

Dairy farming best choice for Dairy Woman Network local co-convenor

Matamata sharemilker Suzie van Heuven could not imagine going back to working in town.

The Dairy Woman Network (DWN) co-convenor for the East Waikato group is hooked on dairy farming.

That might not be surprising seeing she grew up on a farm in Waitoa except for the fact that her high school career ambition was to be a vet or a cop.

But while waiting to be old enough to apply for the police force she dabbled in the dairy industry and by 2011, had progressed to farm manager. During that time she was involved in the Ngarua Young Farmers club, where she met her future husband, Alex. . . 

Despite Expected Milk Price Correction, 45 Cent Drop is a Sobering Blow to Farmers:

Fonterra Shareholders’ Council Chairman, Duncan Coull, said that today’s announcement of a 45 cent drop in the 2015/16 forecast F from $4.60 kg/MS to $4.15 kg/MS, is one that will further amplify the effects of the current low milk price environment on Farmers and their businesses.

Duncan Coull: “Farmers are very aware that this is a global story which is now having a significant local effect. Strong supply out of Europe coupled with flat demand is driving market sentiment as evidenced by the GDT results. . .

More moo woo – Alison Campbell:

Once I started paying attention to the woo around milk I realised how much of it there is. And how ready people are to accept it.

I’ve written about the notoriously non-scientific Food Babe before. Someone with a high pain threshold could probably manage a daily blog post on this young woman and the way she manipulates opinion, and sometimes sells the very things she inveighs against… But I digress!

Today I noticed she’s shared a link about how drinking milk encourages the development of osteoporosis. I was mildly suspicious about the source (‘healthy-holistic-living.com) but before taking a look, I skimmed the comments. Oh dear. . . 

New Science Challenge to boost land productivity and the environment:

Science and Innovation Minister Steven Joyce today launched the Our Land and Water National Science Challenge, which aims to enhance primary sector production and productivity while maintaining and improving land and water quality.

The National Science Challenges are dedicated to breaking new ground in areas of science that are crucial to New Zealand’s future.

“From an economic standpoint they don’t come much more important than this,” Mr Joyce says.  “There is increasing confidence that new agricultural tools will be able achieve both these crucial objectives for New Zealand.  The job of this challenge is to use science to accelerate the development of these tools.” . . 

Welfare of horses and donkeys the focus of a new code:

New minimum standards and best practice guidelines for the management of domestic horses and donkeys have been developed in a new code of welfare.

The new code comes into effect on Thursday (28 January 2016) and includes standards for equine management, food and water requirements, handling, training and equipment, husbandry practices and equine health.

The code has been developed by the National Animal Welfare Advisory Committee (NAWAC) and applies to horses, ponies and donkeys and their hybrids kept for any purpose including those kept as companions (pets), for breeding, sport, entertainment or as working animals. The code also applies to foals and any horse captured from the wild. . . .

Retiring Farmers Urged to Consider All Options Before Selling Up:

With succession front of mind for New Zealand agriculture, a North Island sheep and beef farmer turned agribusiness advisor is encouraging farm owners to explore all of the options before settling on a succession plan.

Sean Bennett, a veteran of 20 years on the land prior to becoming an agribusiness advisor for Crowe Horwath, suggests that succession is one of the industry’s biggest challenges over the next decade.

“When you consider the average age of a New Zealand farm owner is marching steadily towards 60, and the forecast capital required to replace their exit has been estimated at over NZ$60 billion, it’s easy to see why there are widely held concerns,” says Bennett. . . 

Soaring Start to Karaka Select Sale:

After just one day of trade at the three-day Karaka 2016 Select Sale the aggregate is already over half of the final aggregate of last year’s Sale, thanks to spirited competition at all levels of the market.

The momentum from the prosperous Premier Sale flowed through to the first day of the Select Sale with the aggregate, average, median and clearance rate tracking higher than Day One of the Sale last year, with two days of the Sale remaining. . . 

 

American Cattlemen's photo.


Rural round-up

September 26, 2015

Beef exports hit $3 billion in record season:

The value of total goods exported was $3.7 billion in August 2015, up $197 million (5.6 percent) compared with August 2014, Statistics New Zealand said today. Meat and fruit exports led the rise.

Beef exports continued to rise, up 46 percent ($61 million) in August 2015 compared with the same month last year. The beef export season runs from 1 October to 30 September.

“With one month to go in the 2014/15 beef export season, beef exports are at a new high of $3 billion,” international statistics senior manager Jason Attewell said. “So far this season, 404,000 tonnes of beef have been exported, and if we export at least 18,000 tonnes next month we’ll surpass the peak 2003/04 season for quantity exported.” . . 

June floods cost the primary sector $70 million says MPI:

The Ministry for Primary Industries (MPI) has today released a report on the economic impacts to the primary sector of the heavy rain and flooding that affected the western North Island in June.

The total on-farm cost of the June storm affecting Taranaki and Horizons regions has been assessed at approximately $70 million with up to 800 rural properties affected.

MPI Director of Resource Policy, David Wansbrough, says the greatest impact of the storm was on sheep and beef farms, due to landslides and damage to infrastructure.

“Around 460 sheep and beef farms were affected, some with significant levels of infrastructure damage and lost productive capacity. The on-farm economic impact to sheep and beef farms is estimated to total $57.6 million. . . 

People power:

When Lyn Neeson, who farms near Taumaranui, saw the Whanganui and Ohura rivers rise rapidly in June, she figured this spelled trouble for farmers downstream and she was right. 

Since July she has been working four days a week in Whanganui as the coordinator for the RST. She has the task of assessing the reports coming to her from farmers and people such as Harry Matthews and Brian Doughty who know the region and the farmers. 

A major problem is damage to fences, she says. . . 

Origin of Beef Informs Shopper Decisions:

Consumer research shows 89 per cent of supermarket shoppers in key international beef markets consider “country of origin”, when deciding which beef product to purchase.

Beef + Lamb New Zealand chief executive Scott Champion says this insight informs how the organisation works on the ground to boost sales of New Zealand origin beef.

“We use a three-pronged approach that gives consumers reasons to buy New Zealand beef ahead of other countries. We tell the New Zealand story – including environment and animal welfare aspects – and highlight our food safety systems, as well as the health and wellbeing attributes of New Zealand beef.” . . .

Dissapointing 2014/15 result for farmers, encouraging signs for coming season:

Fonterra Shareholders’ Council Chairman, Duncan Coull, said the final payout for the 2014/15 season of $4.65 for a fully shared-up Farmer is a disappointing result for the Co-op’s Farmers.

Mr Coull: “While it is encouraging to see the improvement in Fonterra’s performance in the second half of the season Farmers will be disappointed with the 25 cent dividend which was at the lower end of their expectations.

“Farmers had an expectation the business would have been able to take greater advantage of the low Milk Price environment.”

Mr Coull was encouraged by the Co-op’s improved second-half performance which saw many parts of the business operate at a high level. . . 

Wool Market Firm:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the South Island sale this week saw a strong market with steady support.

Of the 9,250 bales on offer 84.4 percent sold.

The weighted indicator for the main trading currencies was down 0.72 percent compared to the last sale on 17th September, helping hold up local price levels.

Mr Dawson advises that in line with other Merino growing markets, local prices for Merino Fleece 18 to 23.5 microns compared to when last sold on 10th September, saw a slight easing with prices 2 to 6 percent cheaper. . . 

Waikato modelling results show high costs to farmers and region:

DairyNZ is encouraging Waikato dairy farmers to get involved in regional policy development processes after the release of new information highlighting the potential for high costs to their businesses.

Commenting on new modelling released<http://www.waikatoregion.govt.nz/Community/Whats-happening/News/Media-releases/Models-look-at-potentially-very-large-costs-of-improving-water-quality/> today by a group of technical experts, DairyNZ’s strategy and investment leader for productivity, Bruce Thorrold says the analysis shows there is potentially a very high economic and community cost to the region of changing land use and management practices. Estimates range from $1.2 billion to $7.8 billion depending on the degree of improvement in water quality modelled.

“That’s not surprising given the size and importance of the pastoral industry in the Waikato,” he says. . .

Best Sauvignon Blanc in the World for Rapaura Springs in London:

Rapaura Springs Marlborough Sauvignon Blanc 2015 has impressed the judges and taken home the Sauvignon Blanc Trophy at the prestigious International Wines and Spirits Competition (IWSC) in London.

The IWSC was established in 1969 and is one of the world’s pre-eminent wine competitions, held in high regard with consumers and wine trade alike. The formidable reputation of its judging process, and judges themselves, set the standard for wine competitions globally. . . 


Rural round-up: payout edition

August 8, 2015

Fonterra forecasts $3.85:

Fonterra suppliers will get a total possible payout of $4.85/kg of milksolids this season – but there’s a catch.

The farmgate milk price is $3.85/kg MS with a predicted dividend of 40-50 cents then an extra 50 cents for each fully shared kilogram giving a total of $4.85/kg MS.

But the extra 50 cents is a loan, interest-free for up to two years, which farmers will have to apply for. Farmers would have to pay the money back when the Farmgate Milk Price or Advance Rate went above $6/kg MS.

Shareholders’ Council Welcomes Fonterra Shareholder Support Package Announced as Milk Price Plummets:

Fonterra Shareholders’ Council Chairman, Duncan Coull said the Co-operatives unique position has enabled it to provide assistance to its farmers in these tough times. The announced support package in the form of an interest free loan of 50 cents per kgMS for production between June and December will help farmers get through the tough times ahead.

While Fonterra Farmers were expecting a drop in the forecast Milk Price (down $ 1.40 per kg/MS to $ 3.85) it does not make today’s announcement any easier to bear. The dividend forecast of 40 – 50 cents per share lifts the total available for payout to $4.25 – $ 4.35 per kgMs. The retention policy means that the forecast Cash Payout for the season would be in the range of $ 4.15 – $ 4.20 for a fully shared up farmer. . .

Interest-free loans soften payout hit – Fran O’Sullivan:

Fonterra’s top brass cooked up a $430 million parachute so that the dairy co-operative could offer farmers a cushion for yesterday’s brutal cut to the forecast milk payment.

Fonterra chief executive Theo Spierings and chief financial officer Lukas Paravicini began work on the deal five to six days ago along with a couple of the co-operative’s farmer directors.

The upshot was that the Fonterra board was able to yesterday tick off a plan to leverage savings from the company’s transformation project and pump them out to farmers in the form of interest free loans. . .

Plan – do more and work longer – Neal Wallace:

Gerald Holmes concedes he will be a grumpy employer this milking season.

The Taieri dairy farmer has been through downturns before and said the biggest change he will make on his 600-cow farm is to become more self-sufficient.

“It is easy to say no to everything regardless of how reasonable the expense is.”

Gone this season are the days of calling in a plumber, mechanic or electrician to repair equipment.  . .

Times just get tougher for dairy industry – Sally Rae:

”If it continues into next year, … it’s going to be ugly for a lot of people. There will be casualties eventually.”

That was the sobering response of Berwick dairy farmer Mark McLennan on a day dubbed ”Black Friday” for the dairy industry, with Fonterra slashing its 2015-16 forecast price to $3.85 per kg of milk solids, the lowest figure since 2002.

DairyNZ’s latest analysis showed an average farmer needed $5.40 per kg to break even. . .

Fonterra revises down milk price to $3.85 – Tao Lin  and Gerald Piddock:

Fonterra’s decision to slash the price it pays its farmers for milk solids will wipe $2.5 billion off the economy, an analyst says.

Fonterra has cut its milk price forecast to $3.85 per kilogram of milk solids, down from $5.25.

Fonterra has also announced it will provide an estimated $430 million in financial support for farmers to help them cope with the low payout. . .

It is tough down on the farm – Regan Schoultz:

Craig Maxwell, his wife Kathy, and their daughter Penelope have been living on their dairy farm in Paparimu just south of Auckland for 25 years.

It is a big part of who they are as people and a lot of time, blood and sweat has been poured into it.

News of Fonterra’s announcement, informing New Zealanders that the farmgate milk price is set at $3.85, is not welcome.

“It is obviously disappointing but not surprising,” he said. “Nobody is going to be shocked by that figure, but no one is going to be happy.” . .

Milk price drop will have big impact on rural communities:

Rural businesses, not just dairy farmers, will feel a big impact from Fonterra’s announcement today that its 2015-16 Forecast Farmgate Milk Price is reducing from $5.25 to $3.85, says industry body DairyNZ.

DairyNZ chief executive Tim Mackle says the drop means a further reduction of $150,000 for the average dairy farm income for this season. “The harsh reality of this announcement is that Fonterra farmers won’t actually receive $4.25-$4.35 because of the way the payment system works. It’s likely to be more like $3.65,” he says. (see graph below for more details)

“The effect on the level of payments over a season will keep farmers’ cash income constrained for at least the next 18 months and it will take some farmers many years to recover from these low milk prices. . .

Massive fluctations in milk price show NZ’s dairy model ‘flawed’, Landcorp boss Carden says – Paul McBeth:

 (BusinessDesk) – A $4.55 swing in the forecast milk price paid to farmers over two seasons shows there’s something wrong with New Zealand’s dairy model, which is centred around farmer-owned Fonterra Cooperative Group, and it needs to change, says Landcorp Farming chief executive Steve Carden.

Fonterra today slashed $1.40 from its forecast payout to farmers to $3.85 per kilogram of milk solids, below the 2015 season’s $4.40/kgMS and less than half the record $8.40/kgMS paid in 2014. A slump in global milk prices through the course of the year had markets primed for a reduced payout, and state-owned Landcorp, the country’s biggest farmer, was pleased to lock in as much as it could at Fonterra’s $5.25/kgMS guaranteed milk price for the current season.

Landcorp’s Carden said the Wellington-based state-owned enterprise had been anticipating a weak revision for a while, so today’s result wasn’t a surprise. . .

Government should fast-track rural infrastructure to assist dairy regions:

Federated Farmers wants the Government to fast-track its infrastructure projects in dairy regions to assist local economies through the downturn in dairy prices.

Fonterra has announced its forecast Farmgate Milk Price for 2015/16 of $3.85 per kilo of milk solids. In late July last year Fonterra’s forecast price was at $6 per kilo for the 2014/15 season.

Federated Farmers Dairy Spokesperson Andrew Hoggard says small scale rural service industries, such as engineering or contracting, in some instances might be hit harder than the dairy farmers they traditionally rely on for work. . .

‘Black Friday’ will mean huge debt for farmers – Emma Jolliff:

Today has been dubbed ‘Black Friday’ not just for dairy farmers, but the whole New Zealand economy.

Fonterra has slashed its forecast payout to farmers to $3.85 per kilogram of milk solids, which is well below the break-even rate of $5.70.

Economists say it could strip $1.5 billion or more out of the New Zealand economy.

Sally Bosch has been sharemilking for eight years.  She knew a drop in the payout was coming, but not one this big. . .

Farmers cashing up assets – Dene Mackenzie:

Otago dairy farmers are selling what they can to generate cash flow as they face up to an immediate prospect of lower milk payout prices for the next 18 months to two years.

Holiday homes, second cars and unneeded plant and equipment have been the first on the block but accountants contacted yesterday by the Otago Daily Times say more, harder decisions will need to be made by some farmers.

Fonterra will this afternoon announce what many expect to be a sharply downgraded milk payout forecast for the current season. . .

 

 

 


Rural round-up

July 23, 2015

Potential for dairy farmers to increase income from calves:

In a welcome departure from dismal news on the dairy front, farmers are being told that a simple change to their herd mating plans could increase their income from calves.

The advice is one outcome from the Beef + Lamb New Zealand Dairy Beef Integration Programme which is looking at the impact of using good beef genetics in a dairy beef supply chain.

The aim of the AgResearch managed research is to confirm the impact the strategy could have for dairy farmers and others in the supply chain. Early results show clear advantage – and potential additional profit – to dairy farmers from the use of proven beef genetics. . .

 Tiny mite a buzzkill for NZ’s wasps: – Nick Butcher:

A Landcare Research scientist says a tiny mite found on the back of wasps could be helping control the spread of the pests, which sting the country’s primary industries by about $130 million a year.

Wasps also pose a hazard to people and harm the native bird population by competing with them for food, including honeydew and other insects.

Dr Bob Brown discovered the unnamed mite in 2011. He said his studies showed wasp nests infested with the mites were 50 to 70 percent smaller than uninfested nests. . .

Efforts continue to get to the bottom of NAIT puzzle – Allan Barber:

The saga continues, as my Warkworth friend attempts to find out how NAIT intends to ensure correct reconciliation of livestock records, but as yet without a totally satisfactory answer. After further contact, NAIT’s acting Group Manager Sam McIvor replied with answers to the main points raised and I understand the conversation will continue, as both parties try to convince the other of their respective point of view.

At its most basic, the debate centres round the issue of ensuring 100% accuracy which is only possible, if there is 100% retention of tags at the time of stock movement or every animal has a second or reserve tag. At present NAIT estimates there is 98% retention. My friend who came through the mad cow disease disaster as well as FMD outbreaks in the UK is adamant the only acceptable position is 100% accuracy in the event of a disease outbreak. . .

Duncan Coull New Shareholders’ Council Chairman:

Duncan Coull has been elected unopposed to the position of Chairman of the Fonterra Shareholders’ Council.

Mr Coull was first elected to the Council in 2010 to represent Fonterra Farmers in Otorohanga and served as the Council’s Deputy Chair for the past 12 months.

Mr Coull: “It is a privilege to be elected to lead the Council and I thank Councillors for the support I continue to receive. . .

 New Zealand Kiwifruit Growers Incorporated Annual General Meeting:

New Zealand Kiwifruit Growers Incorporated (NZKGI) held its Annual General Meeting today, Wednesday 22 July 2015, updating growers on its key projects and reflected on a successful year.

NZKGI President, Neil Trebilco, says grower confidence and orchard values have continued to increase over the last twelve months.

“The main factors in this increasing optimism are the reduced effects of Psa and increasing OGRs per tray, particularly for Green. . .

 

Dairy farm prices stalling, lifestyle blocks strong, REINZ data shows – Fiona Rotherham:

(BusinessDesk) – Farm sales are down 9 per cent in the year to June and dairy farm prices have begun a slight downward trend, according to the latest Real Estate Institute of New Zealand data.

There were 62, or 11.5 percent, fewer farm sales for the three months ended June, compared to the same period a year ago and the overall year to date is down 9 percent to a total of 1,737 farms sold.

The median price per hectare for all farms sold in the three months to June was $29,141, compared to $26,634 in the same period the previous year, up 9.5 percent. But the All Farm Price Index, which adjusts for differences in farm size, location and farming type, rose by just under 1 percent in June compared to the same month in 2014. . . .

Expert’s visit fruition of relationship cultivation:

Feijoas and Kiwifruit have been on the menu as Lincoln hosted a plant specialist recently to initiate closer working ties around food production with a Chinese province of 90 million people.

Feijoa expert Dr Meng Zhang, of Southwest University of Science and Technology (SWUST) in Sichuan Province, spent a month with Lincoln University and the Bio-Protection Research Centre (BPRC) at Lincoln specifically to learn more about New Zealand horticulture production systems, biological protection and bio-control.

The visit comes a few months after SWUST’s President, Jun-bo Wang, and Director Guan-zhi Zhang, were in Lincoln as part of a large Sichuan trade delegation intended to further extend co-operation between the two institutes. . .

 

Weaker New Zealand Dollar Helps Wool Prices:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the weakening New Zealand dollar helped local prices this week with most types increasing by the corresponding currency change.

The weighted indicator for the main trading currencies was down 2.04 percent compared to the last sale on 9th July.

Of the 7,900 bales on offer from the South Island, 88 percent sold with types suitable for in the grease shipments coming under strong competition. . .

New production quality accreditation for animal feed:

New Zealand animal feed manufacturers now have a quality of production accreditation.

FeedSafeNZ is a new accreditation available to New Zealand Feed Manufacturers Association (NZFMA) members who pass independent audit standards as to quality of feed production. The FeedSafeNZ accreditation has two main aims: to provide safe feed for animals and thereby to protect the safety of human food.

Michael Brooks, NZFMA Executive Director says, “High quality feed is vital not only for the health and wellbeing of animals but also for humans, so it’s imperative that feed is manufactured to strict guidelines and is packed and stored correctly to ensure its quality is maintained. . .

 


Rural round-up

July 23, 2014

Farming family demonstrate conservation message – Ann Warnock:

Dan Steele is a farmer, conservationist, competitive axeman, hunter, historian, lodge host, rugby fan and romantic who never dreamed he’d turn into a bird geek.

But at the age of 21, while wandering up the banks of the Kaiwhakauka Stream at Retaruke Station, his parents’ remote property on the Whanganui River, he spied a family of blue ducks (whio) and they unwittingly shaped the rest of his life.

“I love exploring and poking about up every stream; climbing every ridge. On this particular day I saw two adults with their five ducklings. The next time I saw them there were only three ducklings. Then there were none. I phoned the DOC ranger. They were endangered. It hit me; protecting the blue duck was part of the future of our land.” . . .

Boost for horticulture and viticulture industry:

Social Development Minister Paula Bennett and Immigration Minister Michael Woodhouse have announced plans for a new programme aimed at getting more Kiwis into seasonal work, alongside an increase to the annual RSE cap.

Mr Woodhouse says the need to raise the cap on Recognised Seasonal Employer (RSE) workers from 8000 to 9000 demonstrates the success of the RSE scheme.

“There’s no doubt that the growth in the horticulture and viticulture industry in the past few years would not have been possible without RSE, which has been widely praised locally and internationally,” says Mr Woodhouse.

“It has provided employers with a stable and reliable workforce and given them confidence to expand and invest in their business. RSE workers have also benefitted significantly from gaining invaluable work experience and being able to send money back to their communities at home.’’ . . .

NZ Pacific encouraged for new Seasonal Worker Scheme:

Domestic Pacific workers can be as successful as overseas Pacific workers in the horticulture and viticulture industries says Pacific Island Affairs Minister Peseta Sam Lotu-Iiga.
 
Mr Lotu-Iiga is encouraging employers to take up the New Zealand Seasonal Worker Scheme announced today by Social Development Minister Paula Bennett. The scheme will provide pastoral care and other support to assist Kiwis into seasonal work. Mrs Bennett also announced an increase to the Recognised Seasonal Employer (RSE) scheme. The scheme recruits seasonal workers from overseas to assist in the horticulture and viticulture industries where there are not enough New Zealand workers.
 
“I was in Marlborough in the weekend speaking to employers, Pacific RSE workers and domestic Pacific workers and I saw first-hand the benefits of Pacific people working in the wine industry,” says Mr Lotu-Iiga. . .

Pork industry joins GIA biosecurity agreement:

The Government and the commercial pork industry have committed to a partnership to strengthen biosecurity, Primary Industries Minister Nathan Guy has announced today.

The Deed of the Government Industry Agreement (GIA) on Biosecurity Readiness and Response was signed by New Zealand Pork at its annual conference today.

“This enables New Zealand Pork and the Ministry for Primary Industries (MPI) to make joint decisions on biosecurity readiness and response activities. It means we can focus on the areas of greatest priority to the pork industry,” Mr Guy says.

“What it means in practice is a stronger, more effective biosecurity system. Those with a direct stake in biosecurity can now be directly involved in decision making and funding. . .

– Keith Woodford:

Last week I wrote about PGG Wrightson and the challenges it faces. For their seeds division there are clear strategic options, but for the farm services division, the long term strategy remains challenging. Part of the reason is the competition they are facing from the farm services co-operatives, with Farmlands now dominant in the sector.

Farmlands has 56,000 members and an annual turnover exceeding $2 billion. This is more than double the New Zealand farm services revenue of its major investor-owned competitor, PGG Wrightson. The aim of Farmlands is to keep prices low for its members. This ensures that its investor-oriented competitor also has to keep its margins low. . . .

The truth about grassfed beef – The Food Revolution Network:

A lot of people today, horrified by how animals are treated in factory farms and feedlots, and wanting to lower their ecological footprint, are looking for healthier alternatives. As a result, there is a decided trend toward pasture-raised animals. One former vegetarian, San Francisco Chronicle columnist Mark Morford, says he now eats meat, but only “grassfed and organic and sustainable as possible, reverentially and deeply gratefully, and in small amounts.”

Sales of grassfed and organic beef are rising rapidly. Ten years ago, there were only about 50 grassfed cattle operations left in the U.S. Now there are thousands.

How much difference does it make? Is grassfed really better? If so, in what ways, and how much? . . .

New Zealand Meat Exports October 2013 to June 2014:

Beef + Lamb New Zealand (B+LNZ) compiles lamb, mutton and beef export statistics for the country. The following is a summary of the combined export statistics for the first nine months of the 2013-14 meat export season (1 October 2013 to 30 June 2014).

[All monetary values are in New Zealand dollars.]

Summary

Despite the high New Zealand dollar, particularly during the main export months of January to June, there was an increase in the average value for lamb, mutton and beef/veal. A smaller national lamb crop flowed through to reduced lamb export volumes. However, for only the fourth time in history, lamb exports exceeded $2 billion Free On Board (FOB) in the first nine months of a season.  . . .

New veterinary resource to manage disease in cattle associated with Theileria:

A new veterinary handbook on Theileria, developed by the Theileria Working Group and published by the Ministry for Primary Industries (MPI) and the New Zealand Veterinary Association (NZVA), will help to ensure that veterinarians and their farmer clients are well prepared to manage the expected spring upsurge in infections with this important, new parasite of cattle.

The number of affected farms is expected to exceed those reported in the last two years with nearly 700 beef and dairy herds testing positive so far, with about a third of these occurring in the North Island this year.  . .

 Brown Re-Elected as Council Chairman for Third Term, Duncan Coull New Deputy Chair:

Fonterra Shareholders’ Council Chairman, Ian Brown has today been re-elected unopposed to the position for a third term.

Ian Brown: “I appreciate the support I continue to receive from Councillors and look forward to leading the Council for a further 12 months.”

Mr Brown is joined by first time Deputy Chair, Duncan Coull, also elected unopposed, who will take up his new role on 29 July for a 12 month term.
Mr Coull was elected to the Council in 2010 to represent Fonterra Farmers in Otorohanga and serves as the Chair of the Council’s Representation Committee. . . .


Michael Spaans joins Fonterra board

November 26, 2013

DairyNZ director Michael Spaans has been elected to the board of Fonterra.

Returning Officer Warwick Lampp, of electionz.com Ltd, has declared the final results of the 2013 Fonterra Board of Directors’, Directors’ Remuneration Committee and Shareholders’ Council elections.

Shareholders voted to re-elect incumbent Directors Malcolm Bailey and Ian Farrelly. They will be joined by new Director Michael Spaans.

Michael Spaans, aged 50, lives in Hamilton and farms at Te Aroha. Michael was a Shareholders’ Councillor from 2000 to 2008. Michael is currently a Director of DairyNZ and several other dairy sector companies.

Shareholders Scott Montgomery and Gerard Wolvers were elected unopposed as members of the Directors’ Remuneration Committee.

In the Shareholders’ Council elections, the following Shareholders’ Councillors were elected:

Ward 8 – Hamilton Ross Wallis
Ward 21 – Coastal Taranaki Vaughn Brophy

Both are new Shareholders’ Councillors.

In the eleven other Shareholders’ Council wards where elections were due, nominees were elected unopposed. The Councillors in those wards are:

Ward 3 – Northern Wairoa Penny Smart
Ward 6 – Hauraki Julie Pirie
Ward 9 – Morrinsville Malcolm Piggott
Ward 12 – Cambridge Kevin Monks
Ward 15 – South Waikato Ian Brown
Ward 18 – Otorohanga Duncan Coull
Ward 24 – Southern Taranaki David Werder
Ward 27 – Southern Manawatu Richard Syme
Ward 30 – Northern Central Canterbury Ange Ward
Ward 32 – Southern Canterbury John Gregan
Ward 33 – Otago Ad Bekkers and Ivan Lines

All successful candidates will take office at the close of the Annual Meeting on Wednesday, 27 November 2013.


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