Rural round-up

January 31, 2019

Brain tumour felled Fonterra’s last hands on chairman – Fran O’Sullivan:

John Wilson who died on Monday at just 54 years of age was possibly the last Fonterra chairman to take a hands on approach to governing New Zealand’s largest company.

It was inevitable that Wilson would play a strong and sometimes quite political role in public life in New Zealand – the upshot of Fonterra’s dominance of the dairy industry – at times locked into confrontational situations with equally strong-minded politicians on both sides of the House.

Wilson was passionately devoted to Fonterra; strong-willed, direct, not afraid of anyone – yet also imbued with sufficient charm, persuasiveness and an ability to ride through the hard-knuckled politics of the NZ dairy industry to survive many a battle until his last year as chair. . . 

‘Outrageous’: EU votes to reduce NZ export rights – Pattrick Smellie:

The European Union’s parliament has taken a decisive step towards unilaterally reducing New Zealand’s rights to export specified quantities of tariff-free sheepmeat, beef and dairy products to the trading bloc if and when Brexit occurs.

The move has been slammed as “outrageous” by former trade negotiator Charles Finny in a Tweet and “disappointing” by the Dairy Companies Association of New Zealand.

The Ministry of Foreign Affairs and Trade said the proposed moves risk compounding “growing international economic uncertainty and rising trade tensions”. . . 

Expert evidence rejects water conservation order bid :

Evidence from nine experts supports Horticulture New Zealand’s evidence that a water conservation order (WCO) is not the way to ensure healthy Hawke’s Bay rivers, Horticulture New Zealand chief executive Mike Chapman says.

Horticulture New Zealand opposes the application for the WCO in the Lower Ngaruroro River and the Clive River.

“This impacts our economy and our food supply and a WCO is a blunt instrument that has been surpassed with better national and regional planning tools,” Mr Chapman says. . . 

Guy Trafford analyses the sheep meat market showing the changes to where our product goes, and where our rivals are focusing – Guy Trafford:

With the uncertainty around Brexit and what the balance of future access to both the EU and the UK for sheep meat maybe it could be timely to have a look at the drivers of international sheep meat trade.

Australia and New Zealand account for approximately 90% of international trade and both have declining flock numbers. Since 1990 Australia have dropped from 180 mln down to 65 mln and New Zealand from 58 mln to around 28 mln today. It has only been the increased productivity of both flocks, in regard to meat production, that has kept the industry viable with the critical mass required to remain competitive. . . 

Synlait follows Fonterra with lower forecast farmgate payout – Paul McBeth:

 (BusinessDesk) – Synlait Milk has cut its forecast payout to farmers for the current season, following Fonterra’s lead, as weaker global demand and strong domestic production weighs on international prices.

The Rakaia-based milk producer expects to pay $6.25 per kilogram of milk solids for the 2019 season, down from its previous forecast of $6.75/kgMS. That projection will depend on commodity prices recovering for the rest of the season, something Synlait said it considers realistic. . . 

Scott Tech, Mt Cook Alpine Salmon in automated pin boning project – Jenny Ruth:

(BusinessDesk) – Scott Technology and Mt Cook Alpine Salmon have teamed up to automate the removal of pin bones from King salmon with backing of more than $500,000 from Seafood Innovations.

Brent Keelty, Mt Cook’s processing operations manager, says the only way currently of de-boning King salmon is by hand. . . 

World first IoT farming tech trial  NZ

A pioneering arable farming tech trial is expected to make a quantum leap to help boost New Zealand’s primary export revenue.

New Zealand has a low understanding of how the internet of things (IoT) can assist with farm management and sustainability and adoption of precision agriculture techniques also remains low.

New Zealand’s primary industry export revenue is forecast to reach $43.8 billion for the year to June 2019, an increase of 2.5 percent from 2018. . .

TracMap Data Now Available in FarmIQ:

Integrating two of the country’s leading farm software systems means farmers can now have TracMap Proof of Application data seamlessly passed to their FarmIQ account, ensuring records are updated quickly and accurately for compliance and management needs.

“This is an important development for FarmIQ’s customers. Many farmers have been asking us for Tracmap’s Proof of Application and Proof of Placement data for some time,” said FarmIQ chief executive Darryn Pegram. . . 

Should primary producers do more to protect their data?:

While farmers and horticulturalists continue to integrate new digital technologies into their businesses, this data reliance does bring with it new vulnerabilities and risks. The next generation of producers are doing away with basic spreadsheets and building their businesses using a real-time data streams and cloud-based platforms for analysis and storage.

In the past, a simple computer backup was, in many cases, all that was needed. It has now been replaced by a complex web of data-points, data validation, storage, security access and data control. . . 

New funding for 31 community-led projects:

The Ministry for Primary Industries (MPI) has today announced funding of $9.8 million for 31 new Sustainable Farming Fund (SFF) projects.

The SFF provides funding for projects led by farmers, growers, and foresters aimed at building economic, environmental and social sustainability in the primary sector. It has recently been replaced by MPI’s new Sustainable Food and Fibre Futures (SFF Futures) programme. The 31 projects were in the pipeline prior to its launch in October 2018.

“SFF has been instrumental in kicking off both small and large innovative, community-led projects, and laying the groundwork for SFF Futures,” says Steve Penno, Director of Investment Programmes.

“The new 31 projects cover areas from apiculture and dairy to soil management and horticulture, and are great examples of innovative thinking. . . 

Farmers furious at inclusion on Aussie Farms’ map – Alastair Dowie:

‘Ill-informed’ and ‘disgraceful’ are just some of the words Victorian farmers have used upon finding their details on the controversial Aussie Farms map.

Made public last week, the map identifies a large number of rural and farming enterprises, as well as some saleyards, abattoirs and intensive production operations, across Australia.

Many farmers are furious that their personal information has been displayed on the map without their permission. . . .

 


Check out but never leave

January 16, 2019

UK PM Theresa May’s Brexit proposal was resoundingly defeated:

MPs voted by 432 votes to 202 to reject the deal, which sets out the terms of Britain’s exit from the EU on 29 March.

Labour leader Jeremy Corbyn has now tabled a vote of no confidence in the government, which could trigger a general election.

The confidence vote is expected to be held at about 1900 GMT on Wednesday.

The defeat is a huge blow for Mrs May, who has spent more than two years hammering out a deal with the EU. . . 

The referendum vote for Brexit got only a narrow majority.

Many people who voted didn’t understand the implications of leaving the EU.

May is in a no-win situation.

The EU won’t agree to a deal that will encourage other countries to leave and British MPs won’t agree to a deal that they think will be unpopular with their constituents.

The longer negotiations go on, the more the EU looks like the Hotel California – you can check out but you can never leave.

 

 


Rural round-up

November 29, 2017

Not all gloom and doom on farming environmental front – Pat Deavoll:

I was on a field day at Mt Somers a few weeks ago sitting in a paddock with about 200 others listening to Nick France speaking on lambing his hoggets. Over the fence was a paddock of legume plantain mix. The plantain I recognised as Ecotain from having written an article on the plant a few weeks beforehand.

Apparently, Ecotain promises to significantly reduce nitrogen leaching in the urine patch. It works in four ways; by increasing the volume of cows urine which dilutes the concentration of nitrogen; by reducing the total amount of nitrogen in animals urine; by delaying the process of turning ammonium into nitrate in the urine patch; and by restricting the accumulation of nitrates in soils growing Ecotain. . .

Young horticulturist hoping to pave the way for more women as industry faces accusations of sexism – Sean Hogan:

Shanna Hickling’s typical day could involve getting her hands dirty checking soil quality along the vines, or testing and experimenting in her research lab.

“The business is very diverse, dynamic, what you are doing today will be completely different to what you’re doing the next and that makes it exciting,” the 25-year-old microbiologist told 1 NEWS.

Her passion is being recognised as she claimed the 2017 Young Horticulturalist of the Year award, becoming just the third woman to do so. . .

‘No guarantees’ for red meat trade post-Brexit:

UK and New Zealand ministers have been discussing the future of post-Brexit trade between the two countries.

Britain’s international trade secretary Liam Fox, in New Zealand on a four-day visit, has met Foreign Minister Winston Peters and Trade Minister David Parker.

New Zealand exports about $2 billion of red meat to the EU and has a tariff-free quota of 228,000 tonnes of sheepmeat a year.

Exporters are worried about what will happen to this quota during negotiations for Britain to leave the European Union. . . 

Silver Fern Farms Announce New Chief Executive’:

Silver Fern Farms’ Board of Directors has appointed Simon Limmer as its new Chief Executive.

Silver Fern Farms Co-Chair Rob Hewett says Mr Limmer has an excellent set of skills and experience to continue the strong progress Silver Fern Farms has been making as a leading red meat food company.

“The Board is excited by the leadership Simon will bring to Silver Fern Farms. Simon comes with deep commercial experience in the food, manufacturing and service sectors both here in New Zealand and in several of the key international markets in which we operate,” Mr Hewett says. . . 

It’s been 30 plus years and dairy farmers are still giving:

Rural Exchange and RadioLIVE are proud to promote IHC and to help DairyNZ spread the word about dairy farmers.

Dairy farmers are not just about kissing babies and smiling for the camera. Sure, they like babies, including ones that moo – and when the weather’s good and the grass is growing, they’re known to crack a smile.

Over the past 33 years, dairy farmers around the country have raised more than $30 million for people with intellectual disabilities. . .

More robust biosecurity measures a necessity says Feds:

Federated Farmers is pleased to see that the Ministry for Primary Industries (MPI) is toughening its stance on visitors who ignore New Zealand’s strict biosecurity laws.

MPI revealed it has increased fines by 50 percent since 2014 to air passengers who flout entry requirements, with 9100 infringement notices issued to date this year. . .

Central Otago winemaker wins Enterprising Rural Women Awards:

Central Otago winemaker Debra Cruickshank is the supreme winner of the Enterprising Rural Women Awards.

Cruickshank, of Tannacrieff Wines, was one of four finalist vying for the award at the RWNZ National Conference in Invercargill on Saturday.

At DC Wines, Cruickshank, has created Central Otago’s niche market for not only port but also provided a solution for fast-growing boutique vineyards wanting to create wine. . .

 


Rural round-up

July 17, 2017

Susatainability key to role as new AgResearch leader – Sally Rae:

The big thrust for AgResearch in the future has to be around farm and environmental sustainability issues, new chairman Jeff Grant says.

His focus would be continuing to build on AgResearch’s ability to deliver science that was “highly relevant” to the future of farming.

Regional council changes, in a bid to get better outcomes around land and water, would force AgResearch to provide the science to ‘‘get the answers’’ and the tools for farmers.

“I see the organisation as being the lead provider of answers that allow farmers to meet the expectations for producing high quality food in natural and sustainable environments, while also being able to run a viable business. . .

Cattle grazing on river edges keeps weed ‘shambles’ down on extensive farms – Bob Todhunter:

With alI the bad publicity our rivers are receiving I feel the general public is confused between extensive and intensive grazing.

I would like to make some observations about stock grazing alongside waterways. I am no scientist, however I do have 70-plus years of practical observation.

I remember being taught fishing by my grandfather in the 1950s on the rivers of the Canterbury Plains when sheep and cattle were grazed extensively by the riverbeds. . .

Pine tree seedlings in short supply after poor growing season  – Jill Galloway:

A shortage of pine tree seedlings after a poor growing season for tree nurseries has hit some forest owners and farm foresters.

Patrick Murray ,who is owner of Murray’s Nurseries at Woodville in Tararua, said he had turned down orders of 1.2 million pines.

“We grew around five million pinus radiata but could easily have sold more. It has been a wet summer and poor autumn and that affected badly the growth of the trees.” . . 

EU farmer subsidies under threat – Nigel Stirling:

There are signs that the massive subsidisation of European agriculture could be cut back.

New Zealand has long fought the policy, which tops up the incomes of millions of European farmers.

For decades, NZ has argued the policy keeps European production higher than justified by market prices, and supply on global markets out of kilter with demand. . .

Alliance looks to food service growth – Alan Williams:

Alliance Group hopes that its new food service business will be achieving annual sales above $100 million in the next three years or so.

A four-strong development team is working up a pilot programme in the United Kingdom that the meat exporter will use as a springboard for wider Europe, and into Asian markets as well, general manager sales Murray Brown said.

“Who knows how it could go – we’re a $1.5 billion business and if we could get the food service up to 10% of total sales over three years that would be $100m to $150m.” . .

Nitrate data suggests a corner turned – Nicole Sharp:

Environment Southland’s latest water quality report shows a trend of decreasing or indeterminate nitrogen levels and Southland farmers deserve a pat on the back for this, Agribusiness farm consultant Deane Carson says.

Nitrate levels in Southland had always been an area of significant concern for him, and for a while were somewhat out of control, he said.

But the latest report showed the majority of the sites were indeterminate for nitrite­nitrate nitrogen (NNN) levels over the five years covered and nine of the 49 sites had a decreasing trend. . .


Gibraltar tensions

April 6, 2017

An Anglo-Dutch force captured Gibraltar in 1704 during the War of Spanish Succession and  Spain ceded it to Great Britain in the Treaty of Utrecht in 1713.

It’s still a British Overseas Territory on Spain’s south coast dominated by the Rock of Gibraltar, a 426m-high limestone ridge.

That rock can be seen easily from a good distance away an ever-present reminder to Spain of  Britain’s possession of the territory.

Gibraltar is only 6.7 km2   in area but is strategically placed. In World War II it provided a base from which the Royal Navy controlled exit and entry to the Mediterranean Sea and half the world’s seaborne trade passes through the strait today.

Tensions over Gibraltar have risen again now the European Union offered Spain a right of veto over the future relationship between Gibraltar and the EU after Brexit.

A significant majority of the 32,000 people who live in the territory have repeatedly voted overwhelmingly both for their own autonomy and to reject any sharing of sovereignty with Spain. But that doesn’t stop Spain’s ambition to reclaim the territory.

Spain may very well return to the days when it effectively embargoed Gibraltar, denying easy access to tourists and forcing residents to rely on air links to Great Britain to run their economy. The bureaucrats in Brussels frankly may also cheer on Spain’s punishment of the population and economy of Gibraltar as a means to signal its annoyance with Great Britain for turning its back on the European experiment.

Spain, however, is playing with fire and risks creating a precedent which will burn it several times over. Here’s the problem:

While Spain might object to Great Britain maintaining sovereignty over a 2.6 square mile territory which Madrid sees as its own, Spain has its own enclaves on the Mediterranean carved out of what should be, but for historical accidents of centuries past, sovereign Moroccan territory.

Ceuta is only seven square miles. In 1415, the Portuguese captured Ceuta and, during the next century when Portugal and Spain briefly united, Spaniards flocked to the city. The 1668 Treaty of Lisbon formally ceded Ceuta to Spain to whom it has belonged ever since. Spain, along with France, was a colonial power in Morocco but, in 1956 when Spain withdrew from northern Morocco (it would leave the Western Saharan in 1975), it continued to hold Ceuta.

Melilla, only 4.7 square miles, has a similar history. Spain conquered the city in 1497 and rebuffed subsequent Moroccan political and diplomatic efforts to win it back. Spain may consider it an autonomous territory but, it reality, it is a colonial outpost and an accident of history.

Spain may seek advantage from Brexit going forward in order to reclaim Gibraltar; that’s Madrid’s prerogative. However, so long as Spain continues to hold Ceuta and Melilla, instead of allowing an extension of Moroccan sovereignty, then Spain and the European Union’s case will be both hypocritical and weak.

Our first visit to Gibraltar was prompted by a desire to watch the touring Lions play Otago in 2005. We were living in Vejer de la Frontera, a village in Andalusia on the Costa de la Luz, where the locals favour football and we thought  Gibraltar would be the nearest place where people would be watching rugby.

It’s connected to Spain by a narrow isthmus on which Gibraltar airport is built.

We followed the advice of locals that it’s easier to enter the territory than face the queues when driving and once through customs and immigration we walked across the tarmac to the town.

Our first impressions weren’t positive.

The town was full of high-rise apartments that looked like they’d been designed in England with no appreciation of the Mediterranean climate.

However, the locals were friendly and we had no trouble finding a pub that would be showing the rugby next morning. The locals became friendlier still when the Lions won.

We spent the rest of the day exploring the rock, meeting the Barbary Macaques and learning about the military history including the WW II tunnels.

 

Legend has it that Britain will lose control of the territory if the apes die out. This was the seed from which Paul Gallico wrote his book Scruffy.

Chris Cleave’s Everyone Brave is Forgiven includes a more realistic and harrowing story of war in Gibraltar.

 

 

 


Disunited Kingdom

June 25, 2016

The United Kingdom is a disunited kingdom.

The UK as a whole voted to leave the European Union but two of the four countries which comprise it did not.

England and Wales voted to go, Northern Ireland and Scotland voted to stay.

This could prompt another move for Scottish independence and possibly a push to reunite Ireland.

The decision already has its casualties.

Prime Minister David Cameron has announced he’ll stand down, saying he thought the ocuntry need fresh leadership and couldn’t captain the ship to its next destination,

Reports that Morgan Stanley would move 2000 jobs to Dublin of Frankfurt were later denied but both the pound and euro fell after the referendum result was announced.

The pound dropped below the crucial $1.40 mark amid fears that the UK would vote to leave the European Union. Sterling fell as much as 10% early on Friday, and is on track for its worst one-day fall in history. After trading at $1.3262, down nearly 9%, as of 5.27am BST, the currency recovered slightly to 1.3394 as of 6.05am BST.

The euro fell the most since it was introduced in 1999 while other currencies in Europe also took a hit, Bloomberg reported. . . 

The wheels of politics and bureaucracy grind very slowly so there will be no immediate changes but Beef + Lamb New Zealand CEO Sam McIvor sent an email to farmers saying:

  • The EU and UK are New Zealand’s most valuable sheepmeat markets and Brexit could have significant implications.
  • It is unclear right now exactly how this will play out as Prime Minister Cameron has not confirmed that he will act upon the results. There are three key issues we are focused on at present:
    • Ensuring that we maintain our overall quota access into the EU and UK as the UK renegotiates its access into the EU. This will take some time and we will be able to work with the NZ government and EU/UK governments to understand the process and ensure the best possible outcome for NZ sheep and beef farmers;
    • Understanding the impact of Brexit on the sheep and beef markets in the UK and EU. The EU currently takes 90 percent of the UK’s sheepmeat exports.
    • Other indirect impacts could be appreciation of the NZD against the EU and UK.

NZ quota access into the EU & UK

  • New Zealand currently has a quota of just under 228,000 tonnes of sheepmeat into the EU at zero duties. This represents over half of New Zealand’s total global sheepmeat exports. The UK currently takes half of our exports to the EU by value.
  • New Zealand also has a smaller quota of 1,300 tonnes of beef into the EU at an in-quota duty of 20%.
  • As the UK negotiates its exit from the EU over the next couple of years it will be negotiating how much of these quotas will be transferred solely to them and on what terms.
  • Under WTO rules, New Zealand’s overall levels of access to both the EU and UK will have to remain the same, but we will lose the flexibility to decide which of the two entities to send our exports to depending on demand from customers.

Potential impact on EU and UK Markets

  • There will also likely be disruption on UK and EU markets.
  • The UK exported 90 percent of its sheepmeat exports to the EU last year. It currently faces zero tariffs into the EU.
  • If it loses its preferential access into the EU then its domestic market will be oversupplied, further reducing demand for NZ product, but this could potentially improve our market into the EU. 

The process of Brexit as we understand it at present:

  • There will be no immediate change to any access conditions until the UK officially ‘exits’ the EU which will take around two years, if not longer.
  • The departing Member State must notify the European Council (the leaders of each Member State) that it has decided to leave, and after this the departing Member State and the remaining Member States must negotiate the terms of exit.
  • The terms of exit must be agreed between the departing Member State, and a qualified majority of the remaining Member States. A qualified majority means 55 percent of remaining Member States, representing 65 percent of the remaining EU population.
  • European Union membership will automatically cease two years after the departing Member State gave notice of withdrawal if no agreement is reached. However, if there is unanimous agreement from all Member States, the negotiation process can be extended.
  • Under the WTO rules, the UK and EU would be legally obliged to retain New Zealand preferential access conditions (quotas) for red meat, however how this would be achieved is a cause for concern for the sector.

Federated Farmers says New Zealand needs to milk Brexit for all it’s worth:

With Britain voting to exit the European Union today, Federated Farmers is urging diplomats and export companies to be quick off the block and first inline for meetings to push New Zealand’s agenda.

Federated Farmers President Dr William Rolleston said: “Britain leaving the EU will create a considerable degree of political and financial uncertainty but we must consider what new opportunities might be won. This could be a great opportunity to work with lamb producers in the UK to get better outcomes for both countries.

“We have a shared history with the UK and want to ensure this outcome works in both countries’ interests. We need to emphasis our common thinking and remind Britain we are an important ally.

“The key thing for farmers is assessing how this change will affect trade to Britain as well as Europe and what this means for our free trade negotiations.

“The vote suggests a significant threat against the trends of globalisation and trade liberalisation. New Zealand as a small open economy will be a loser if protectionism prevails.” Dr Rolleston said.

Currently New Zealand primary exports to Britain are at three percent and 11 percent to Europe. Farmers are in a very different position than we were when Britain entered the European Union 43 years ago; at that time 40 percent of our exports went to Britain. Before that in the 1950s over 80 percent of New Zealand exports went to Britain.

Charles Finny echoes the need to move quickly:

What has happened today is hugely significant for New Zealand.
The UK is still a major market for us the official stats of $1.651 billion is probably understated. Taking the UK numbers out of the EU total reduces our goods exports to the EU to $3.738 billion – $1 billion less than our exports to ASEAN.
Our FTA negotiation with the EU has just become hugely complicated.
And we have our quotas into the EU – hard fought for and then hard defended potentially up for re-negotiation.
I think markets are over reacting. Nothing will happen to trade flows overnight. Moreover we can do a FTA with the UK fast and help to negotiate access for the UK into Asia that will be superior to that the EU will. And I think the chances of a UK-US FTA is also higher than a TTIP being concluded.
I don’t think that the consequences for UK trade with the EU will be as negative as many have been suggesting. Even in a worst case scenario of no FTA type relationship there will be almost zero negative impact apart from in agriculture
I don’t think the negatives for NZ will be as big as some have suggested – so long as we move fast.

Dr Oliver Hartwich, writing before the result was known,  says we should keep calm and carry on:

. . .Such political uncertainties aside, there is no need to panic. Not even in case of Brexit. The slogan has to be ‘Keep calm and carry on’.

Even a Brexit vote would not mean that Britain is out of the EU straight away. It would only give the UK government the mandate to inform Brussels of their wish to withdraw. They would not have to do so immediately though. If Prime Minister Cameron had to go, he would most likely leave this task to his successor.

Negotiations would only begin once the EU is officially notified. Under Article 50 of the EU Treaty, these would take at least two years.

Over all this time, nothing would change. Britain would have access to European markets. And they could well retain it depending on the outcome of the negotiations.

So we will watch the count of the referendum with excitement. But let’s keep calm no matter what the result. There is no need to panic either way.

The referendum result will mean big changes for the UK and will almost certainly prompt change in the EU.

The UK’s entry to what was then called the European Common Market  caused a great deal of angst and difficulty for New Zealand because the UK bought so much of our produce.

Its exit shouldn’t be nearly so problematic because our trading eggs are in far more baskets.

Where there are big changes there are also opportunities.  New Zealand should make the most of them and continue to promote free trade and seek deals with individual countries and trading blocks.

 

 


Brexit – stay or go?

June 23, 2016

Tonight, New Zealand time, the polls open to allow people in the UK to vote on whether or not they stay in the European Union.

The euro makes life easier for people travelling between the countries which use it. But monetary union doesn’t work properly when the parties to it don’t have economic union.

The UK was sensible to retain its own currency.However, the rush to swap pounds for euro shows people believe victory for the leave campaign would result in a substantial fall in the value of the pound.

The theory of the EU has a lot to commend it  – a single market with free movement of people and trade. But politics and a bloated bureaucracy have too often meant the promise hasn’t been realised.

Whatever the people of Britain and Northern Ireland vote for or against Brexit, the EU needs major reform.

 

 


%d bloggers like this: