Rural round-up

October 2, 2018

Fonterra’s China farms are a target for asset sales – Keith Woodford:

This is the first of a two-part series putting Fonterra’s China Farms under scrutiny. In this first part, the focus is on the origins of how Fonterra managed to entrap itself in its loss-making China Farms project.

Fonterra’s new leadership team of Chair John Monaghan, CEO Miles Hurrell and CFO Marc Rivers has made it clear in recent farmer meetings that debt reduction is a priority.  All options are supposedly on the table. However, the only way to achieve rapid debt reduction is by selling non-strategic assets. In that context, Fonterra’s China Farms must surely be lined up in the cross wires.

Fonterra’s China Farms have been loss-making for at least four years. Accumulated losses over that period, using market prices rather than internal transfer prices, total NZD $179 million EBIT.  These losses are before any contribution to Fonterra’s unallocated overheads of nearly $500 million per annum or paying interest on the borrowed capital. More detail on that in Part 2 of this series. . .

Planting a billion trees – Primary Land Users Group:

How does that relate to the Waikato Region under PC1?

The Government has set a goal to plant one billion trees over 10 years (between 2018 and 2027).

Why plant 1 billion trees? The short answer is because trees absorb carbon dioxide (CO2) from the atmosphere and turn it into wood, which holds carbon for as much as hundreds of years. Trees absorb CO2, protect the soil, improve water quality and create wildlife habitat. The long answer is because New Zealand has committed to reduce greenhouse gas levels which contribute to climate change. It has three reduction targets – for 2020, 2030 and 2050.

Urbanitess keen for a career in dairy :

One in five of all people wanting to take up a dairy apprenticeship is coming from New Zealand’s biggest city, and Primary ITO chief executive Linda Sissons says many more will be needed where they came from. Primary ITO (industry training organisation) and Federated Farmers are celebrating the first year of the joint Federated Farmers Apprenticeship Dairy. . .

Have your say on the dairy herd management scheme:

The Ministry for Primary Industries (MPI) wants to hear from the dairy industry and people with an interest in how the dairy herd improvement regulatory regime can help to ensure that New Zealand’s dairy industry remains world leading.

The dairy herd improvement regulatory regime has not been comprehensively reviewed since it was established in 2001, says Emma Taylor, MPI’s Director of Agriculture, Marine & Plant Policy. “It’s important the dairy herd improvement regulatory regime reflects the changing needs of the dairy industry. It’s timely to look at how the regulatory settings can better support industry both now and into the future. . .

Consuming milk at breakfast lowers blood glucose throughout the day :

A change in breakfast routine may provide benefits for the management of type 2 diabetes, according to a new study published in the Journal of Dairy Science. H. Douglas Goff, PhD, and the team of scientists from the Human Nutraceutical Research Unit at the University of Guelph, in collaboration with the University of Toronto, examined the effects of consuming high-protein milk at breakfast on blood glucose levels and satiety after breakfast and after a second meal. Milk consumed with breakfast cereal reduced postprandial blood glucose concentration compared with water, and high dairy protein concentration reduced postprandial blood glucose concentration compared with normal dairy protein concentration. The high-protein treatment also reduced appetite after the second meal compared with the low-protein equivalent.

“Metabolic diseases are on the rise globally, with type 2 diabetes and obesity as leading concerns in human health,” Dr. Goff and team said. “Thus, there is impetus to develop dietary strategies for the risk reduction and management of obesity and diabetes to empower consumers to improve their personal health.” . .

Capacity crowd expected at inaugural ‘Beyond Bovis’ seminar:

 Hundreds of farmers and rural professionals are expected to attend the inaugural ‘Beyond Bovis’ seminar in Hamilton next month Held in conjunction with the Waikato A&P Show the event is, according to the Director of Showing Waikato, Doug Lineham, the first of its kind in New Zealand, its goal being to rebuild and strengthen the New Zealand cattle industry in the wake of Mycoplasma Bovis (Mb).

The impact of (Mb) has extended beyond the breeding and animal containment strategies of individual farms to a widespread impact on the movement of all cattle,” Doug Lineham said. . .

 

Rural round-up

June 25, 2014

Neighbours to sheep shooting worried:

Neighbours of a North Otago farm where nearly 200 sheep have been shot say they also fear what will happen next.

Police are investigating the unexplained slaughter in Ngapara, 30km inland from Oamaru at the weekend. Peter Stackhouse discovered the dead sheep, and others wandering injured, at sites about 1km inside his farm over two successive nights.

On Saturday morning, he found 110 sheep that had been killed and though he shifted the flock, another 80 hoggets were killed on Saturday night.

Mr Stackhouse said the the killing of his stock was a great shock and he was not sleeping well, worrying about what will happen next. Although the sheep were shot, he had not found any spent cartridges or bullets. . .

Lincoln and Canterbury – is a merger the solution? – Keith Woodford:

Last week I wrote how Lincoln University is facing hard times, and is shedding lecturing staff in core areas of land-based education. I suggested one solution could be for Lincoln to become much more focused on its true areas of specialisation and to greatly reduce the managerial and marketing spend which has recently ballooned. The other alternative is to link with Canterbury University.

Unfortunately, the first alternative is unlikely to occur. It would require the senior management team to reverse key policies with which they are collectively associated.

So the other alternative of joining with Canterbury University now needs careful scrutiny. The Tertiary Education Commission stated earlier this year that in its opinion New Zealand had too many Universities, and if that really is the case then Lincoln surely has to be first cab off the rank. Also, Lincoln’s Vice Chancellor (VC) himself said some two years back that, if his proposed growth strategy failed, then the alternative would be to join “the fine university down the road”. . .

Sex and inbreeding (in bees) – Peter K Dearden:

Tomorrow I am speaking at the National Bee Keepers Association conference in Whanganui and thought I might write a bit about what we have been doing to help me get things clear.

Much of my research work is on bees; trying to learn how they work, trying to find new ways to protect them and, occasionally doing research to help the beekeeping industry.

Beekeeping is a reasonably large business in New Zealand, making over $100 Million per annum in bee-related exports. More importantly, it is estimated that Bees bring $5.1 Billion each year to the New Zealand economy through pollination. Bees are a vital part of our primary production sector and we need to care about them. . .

Alliance venison plants cleared for China:

The Alliance meat group has had a breakthrough in getting both of its venison processing plants certified to supply the China market, that doubles the number of listed New Zealand venison plans to four.

New Zealand has had a long established trade in deer velvet or antler to China and some other deer products.

But venison is relatively new to that market. . .

Return to profit: Blue Sky smiling – Sally Rae:

Blue Sky Meats’ return to profitability spells an end to about two and-a-half years of turmoil in the international sheep meat industry, chairman Graham Cooney says.

Directors were ”quite rightly proud” of how the Southland-based company had not only survived but moved forward in a time when the sheep meat processing and exporting industry had reputedly lost $200 million, he said.

The company has recorded a $1.946 million after-tax profit for the year to March. . . .

South Canterbury ag-student is finalist in Green Agriculture Innovation Award:

Twenty-year old University student Genevieve Steven, of Timaru, is the winner of the Viafos Youth Award, putting her in the running against nine other finalists as the supreme award winner of the inaugural Green Agriculture Innovation Awards (GAIA) in New Zealand.

The youngest contender for the award, Ms Steven is in her second year at Lincoln University on a DairyNZ scholarship studying biochemistry, animal sciences, plant sciences, soil science and management papers.

Her ultimate goal is a move into biological farming. “I would like to be an educator and advisor to farmers already using the principles of biological farming, but also take the concept of ‘biological farming’ to those who don’t know much about it. I enjoy the challenge of changing people’s perceptions.” . . .

Grower lauds sugar beet ‘wonder fuel’ – Diane Bishop:

Sugar beet is the new wonder fuel, according to Southern Cross Produce owner Matthew Malcolm who has started growing and harvesting sugar beet for the dairy market.

“I can see a real future for it.

“With a lot more wintering sheds going up there will be a bigger demand to take the crop to the cows,” he said.

Malcolm, who has grown 10 hectares of the crop on his Woodlands property in Southland, was keen to try sugar beet which has a higher sugar content than fodder beet. . .

2014 Young Viticulturist of the Year set to be the biggest and best yet:

With just two weeks to go until the first regional rounds of Young Viticulturist of The Year 2014, this year’s competition is shaping up to be the biggest and best yet! Now in its ninth year Young Viticulturist of The Year will host a fourth regional competition for the first time with Wairarapa Winegrowers, joining Hawkes Bay, Marlborough and Central Otago.

Competition organiser, Emma Taylor said “Since the success of Braden Crosby from Borthwick Estate who was the 2012 national champion, it seems that many viticulturists in the Wairarapa region have been inspired by him and there is now enough interest for Wairarapa to hold their own round of the competition.” Braden Crosby will use his experience as a past competitor to shape the competition which will be held at Te Kairanga Winery on the 30th July alongside the regional Silver Secateurs competition. . .

 


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