Rural round-up

August 1, 2015

A Free Trade Deal must include Free Trade:

Federated Farmers says the Government must hold firm on a deal for agriculture at the Trans Pacific Partnership talks in Hawaii.

Federated Farmers’ Dairy Chair Andrew Hoggard is adamant that the reason for New Zealand being at the 12 nation talks is to establish free trade in the region, and a trade deal that doesn’t include meaningful access for dairy is not a free trade deal.

“Let’s be clear. Dairy is our largest export earner. It would be like the Japanese concluding a deal that didn’t have anything in it for automotive or technology trade.” . .

 

Like Uber but for dairy – Offsetting Behaviour:

There could be a lot of opportunities for Canadian dairy in opening up their markets to foreign competition, and in having foreign markets opened to their products. But there would be transitional costs.

The Globe and Mail reports on some relevant aspects here. But they miss the supply management angle. One important reason that Canadian dairy farmers oppose changes to the system is that they own a lot of quota rights. Under the Canadian system, the right to milk a cow costs money. And just like taxi permit owners in regulated markets hate Uber, Canadian dairy farmers hate New Zealand. But who can really blame them? If you were sitting on a big regulatory asset somebody proposed wiping out, wouldn’t you object?  . . .

Health and Safety — some way to go – Katie Milne:

The long awaited report back to the Select Committee on the Health and Safety Reform Bill has now occurred.

We don’t totally know what we are getting. The Labour Party will be opposing the legislation.  The Council of Trade Unions doesn’t like it. The Government has signalled a Supplementary Order Paper to amend the Bill before it goes through its final stages before becoming law and there are regulations to be drafted to sit under the eventual Act as well.

Besides this, WorkSafe New Zealand has considerable discretion how it implements the new Act and the interpretation courts put on the sections and regulations will keep a whole lot of lawyers busy for some years to come. . .

Farmers warned to prepare for more milk cuts:

National dairy industry body DairyNZ is warning farmers to prepare for further cuts to companies’ already low milk price forecasts.

It comes as ASB announced this morning it expects Fonterra to slash its forecast by $1 to $4.25 per kilo of milk solids when it reviews its payout next week.

However, the bank is predicting an end of season payout of $4.50. . .

T&G Global strengthens position as asparagus marketer –  Jonathan Underhill:

(BusinessDesk) – T&G Global, the fruit marketer controlled by Germany’s BayWa, has acquired assets from long-term Australian partner M&G Vizzarri, strengthening its position as a major asparagus trader.

T&G’s 50 percent-owned Australian subsidiary Delica will buy Vizzarri Farms, the asparagus marketer founded by Mario and Gina Vizzarri, from its Delica co-shareholder M&G Vizzarri. No price was disclosed.

The joint venture will be renamed T&G Vizzarri Farms and will become “one of the leading asparagus traders in the southern hemisphere,” T&G Global said in a statement. Targeted revenue from the enlarged business is about $40 million in its first year and more than 5,000 tonnes, it said. Currently Delica handles export sales for Vizzarri Farms, which owns 29 properties with a combined 1,900 acres. . .

Treble Cone’s Busiest Ever Start to a Snow Season:

The South Island’s largest ski area – Treble Cone (Wanaka, New Zealand) has enjoyed its busiest ever start to a snow season and has set new records for both its ‘busiest week overall’ and ‘busiest July ever’.

With fantastic pre-season and early season snowfalls the entire mountain including the Home and Saddle Basins, the right-of-passage Summit Slopes, the revered expert only Motatapu Chutes, and the Matukituki Basin were all open from Opening Day.

Over the first week of the New Zealand school holidays Treble Cone enjoyed its busiest ever week of skier visits, with all terrain open spreading guests across the entire mountain enjoying the cold dry snow.

 


Rural round-up

July 25, 2015

Govt: Lighter rules insulating dairy shock – Suze Metherell:

Light regulation in the New Zealand dairy industry has insulated the wider economy from the sharp decline in prices for the country’s largest export commodity, according to Finance Minister Bill English.

Prices for whole milk powder, the country’s key commodity export, have plunged this year and dropped an unexpectedly large 10.7 percent in in the GlobalDairyTrade auction last week, sending the kiwi dollar to six-year-lows.

Dairy prices are now expected to remain lower for longer than previously forecast, amid higher global supplies, weak demand in China and an import ban in Russia on European dairy products, which are being sold into other market. . .

Vets to cut down on antibiotics:

The Veterinary Association has set an ambitious target to reduce the use of antibiotics to control disease in animals.

Its goal is to have New Zealand no longer having to rely on using antibiotics for animals by 2030.

President Steve Merchant said the country was well suited to the challenge because of its size, and the fact that it was already the world’s third lowest user of antibiotics on animals. . .

Changes to Health and Safety Reform Bill are sensible:

Federated Farmers believe the two month delay in the Select Committee reporting back the Health and Safety Reform Bill to Parliament has led to improvements for the farming industry.

The Bill has been reported back today.

Federated Farmers health and safety spokesperson Katie Milne says the Bill overall will make farms safer places.

Specifically she says the Bill has gone some way to recognising that farms are different to urban industrial workplaces. . .

 

New Māori aquaculture agreements signed:

New regional agreements for Māori commercial aquaculture have been signed by Government Ministers today, including Primary Industries Minister Nathan Guy.

Three regional agreements have been signed with iwi from the Auckland, Tasman, and Marlborough regions following successful negotiations between the Crown and regional Iwi aquaculture organisations.

The agreements are the result of the Māori Commercial Aquaculture Claims Settlement Act 2004, which requires the Crown to provide Iwi aquaculture organisations with 20% of new commercial aquaculture space consented since October 2011, or anticipated to occur into the future. . .

Australian consortium said to be in no hurry to up their bid for A2 Milk – Fiona Rotherham:

(BusinessDesk) – Australian-based Freedom Foods and US-based Dean Foods are said to be in no hurry to up their bid for A2 Milk Co after the milk marketer this week told its suitors to try again after an initial offer wasn’t compelling and drew out as yet unnamed rival bidders.

A source close to the bidding consortium said they were underwhelmed by a trading update A2 Milk released at the same time as rejecting the offer and request for due diligence, saying it contained “nothing that would shift their view on valuation”.

Given Freedom Foods, the company’s previous joint venture partner in Australia, has a 19.1 percent blocking stake in A2 Milk, any rival bidders may struggle to get an offer across the line. . .

 

Wool market buoyant:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that today’s sale of 6,617 bales saw increases of 1 to 2 percent overall. A good result, considering offering of 52 percent Coarse Crossbred Early Shorn and Second Shear types.

There was good demand for shorter Second Shear types 2 to 3 inch 32 to 35 micron as buyers bid to cover Chinese orders.

The trade weighted indicator was little changed from the last wool sale on 16th July. . .

 

 


Rural round-up

July 24, 2015

Certainty underpins healthy community :

Federated Farmers have placed an emphasis the importance of certainty within the primary sector as a key component of a thriving economy.

Speaking at the Local Government New Zealand conference, Federated Farmers president Dr William Rolleston told councils the number one issue facing the primary sector needs was certainty, and with certainty came the ability to make investment decisions that underpinned a thriving economy. 

Rolleston also spoke about the Resource Management Act (RMA), and heavy burden it placed on the rural sector.  . .

Shanghai Pengxin puts all its farms up for sale – Gerard Hutching:

Chinese company Shanghai Pengxin’s total farm assets in New Zealand are up for sale, including 16 farms and a conditional agreement to buy Lochinver Station – but they are unlikely to be sold.

Because the company wants to restructure, the Overseas Investment Office (OIO) requires it to offer its assets for sale to New Zealanders.

The 16 dairy farms totalling 7885 hectares are the former Crafar family farms, bought controversially for $200 million in 2012.

They were listed for sale on Trade Me on Sunday on a “price by negotiation” basis and by Tuesday had been viewed 657 times. . .

Paraparaumu farmer is looking to give away his best friend to a loving home – Jessy Edwards:

Brian Arnopp is being eaten out of house and home by his best mate, and it’s finally got too much for him.

So now Mr Bull is going free to a good home.

Arnopp, of Paraparaumu, has looked after Mr Bull since he was left at the 77-year-old’s farm four years ago. . .

Pipfruit industry on track:

The New Zealand pipfruit industry recently regained its position as the world’s most competitive pipfruit industry, making this year’s conference time to reflect, says Pipfruit NZ.

The pipfruit industry, which is due to hold its annual conference in Wellington in August, is one of the fastest growing primary sectors in the country. Exports have increased in value from $340m in 2012 to $536m in 2014. The industry is well on track to reach its $1bn export target by 2022.

Pipfruit NZ says the annual conference will be an important networking and educational event for the industry. . .

Time to show your true nature:

Farmers are being urged to enter the Ballance Farm Environment Awards, which now include the Auckland region.

Entries open on August 1.

Facilitated by the New Zealand Farm Environment (NZFE) Trust, the awards promote best-practice land management by showcasing the work of people farming in a way that is environmentally, economically and socially sustainable. . .

Farmers need government to heed ’10 point’ local government plan:

Federated Farmers want the government to give immediate attention to the Local Government New Zealand’s ’10 point plan’ for rates reform.

Federated Farmers Local Government spokesperson Katie Milne says the disastrous dairy payout prices in particular mean farmers want urgent action on inequities in the rates they pay to their local bodies.

“We farmers can’t control international prices. Neither can the government. But the government can legislate rates reform. It all helps, and the sooner the better,” Katie Milne says. . .

Te Karaka student awarded scholarship:

A Te Karaka student has been awarded the Mangatu Blocks and Ravensdown Scholarship, providing three years study at Auckland University.

Roland Taupara Brown completed his secondary schooling at Gisborne Boys High School where in his final year he was named Dux for 2014.

Brown says the scholarship provides him with a unique opportunity to focus on his studies in science and commerce at Auckland University. His Bachelor of Science degree will focus on green chemistry and his Bachelor of Commerce will provide the business disciplines to ensure a balance between environmental and commercial considerations. . .


Growing economy supports healthy environment

July 23, 2015

Federated Farmers’ president Dr William Rolleston addressed Local Government New Zealand’s conference on how a growing economy can support a health environment:

Farmers and governments around the world worry about food security and climate change. How could we increase our production while mitigating our environmental footprint? How could we build resilience in a changing climate?

If agriculture is to continue its contribution to New Zealand’s economy we must also address the issues of productivity and environmental impact.  We must continue to enhance our economic benefit by increasing productivity, adding value to our current products and developing new high value products.  We must address the risks which exist in the market, in our social licence to operate, in biosecurity (including pests), and in our climate.

It is not axiomatic that economic progress means environmental deterioration.

Rather economic progress is needed to pay for environmental protection and enhancement.

As a farming leader I have looked for solutions which enable economic progress while supporting a healthy environment.  In this way the incentives line up and the need for punitive resource rentals, taxes and similar instruments is obviated.  Let me give you some examples:

  • Nitrogen, whether in chemical fertiliser, organic fertiliser or fixed by legumes is a significant expense on many farms.  It always shocks me just how little is actually utilised in product which moves off farm and how much is lost to the atmosphere and beyond the root zone. These losses contribute to adverse water quality outcomes as well as greenhouse gases.  Interventions which increase the utilisation of nitrogen will result in better environmental outcomes as well as reduced expense for the farmer.
  • It is a myth that water is free.  Farmers pay big dollars to have water reticulated to their farms through their own or other schemes.  The proposed Ruataniwha Dam is a good example. In Canterbury we have seen significant increases in water efficiency through spray irrigation and now precision irrigation.  Research is continuing to improve drought tolerance and water efficiency in the very plants themselves.
  • Soil erosion is a loss of capital from the farming system.  It is not new and it occupied the minds of my farming grandparents on our property for as long as I could remember.  New techniques such as no till agriculture where paddocks are sprayed with herbicide and direct drilled not only increases productivity but retains soil structure helping to preserve this valuable resource from wind and water erosion that ploughing would leave it vulnerable to.
  • Even without putting biological emissions into the Emissions Trading Scheme farmers have improved their carbon efficiency by 1.2 percent per year, for the past decade, through improved productivity.  Not only that though, New Zealand farmers are amongst the most carbon efficient animal protein producers in the world.  In the absence of mitigation tools and any charges on our competitors, penalising farmers to the extent it would reduce biological emissions would mean a movement of production to less efficient producers offshore and an increase in global biological emissions.

So in many areas economic and environmental goals are already aligned which is good business for councils.  But alignment is not always possible and we can’t pretend that human activity does not have an effect on the environment.  Of course it does. Our response could be to wind agriculture back, to reduce production to mitigate environmental impacts but this also has consequences.

We live in a global world whose population continues to expand.  The FAO predict we will need to increase world food production by 60 percent by 2050 to meet demand.  

New Zealand cannot feed the world, but we must play our part.  It would be irresponsible of us to squander or underutilise our resources.  Even if we are only feeding the rich and privileged – the worried well if you like – wetlands and forests will need to be converted to farmland at the bottom end to compensate for this indulgence.  This is not supporting our environmental credentials.

When it comes to resources our Resource Management Act (RMA) works on a first come first served basis.  This works well at the front end.  Decision makers at that point cannot have the foresight to know what the demand for a resource will be.  However first in first served becomes problematic as a resource reaches its limits when a more strategic approach is needed.  Councils have grappled with this.  Creating property rights through tradable quota however this is not the answer.

There is no doubt scarcity through quota creates value.  However this is a double edged sword.  On the one hand increased value can mean increased attention by the custodian, on the other hand that value can be artificial and limit options for more creative solutions.

In Canada for example, milk is produced under a quota system.  Many Canadian dairy farmers oppose free trade because it will erode their quota value.

Creating ownership in water could have a similar outcome where water storage or increased supply may be resisted by the status quo.

But here decision makers have a problem, which the RMA is yet to solve satisfactorily. How do you allow movement of a resource to the best use in an efficient and equitable way without creating a property right that would flow simply to the entity that can afford to pay the most, or worse still, one which is banked to the detriment of the economy and the environment?  How do you allow for new entrants?

Three potential answers lie in resource expansion, science to increase efficient use, and collaboration.

Water storage is a good example of resource expansion and remains at the top of Federated Farmers’ agenda.  

Water storage builds resilience – the trifecta of economic resilience, community resilience and environmental resilience.  It also creates headroom to dissipate the issue of constraint.  The rationale however is still governed by cost.

The Opuha Dam in South Canterbury remains the leading example of water storage for irrigation.  As well as economic benefit the Opuha Dam has increased river flows, generated electricity, provided Timaru City with water as well as recreation for water craft, fishers and campers.

The courage of a few to build the Dam has, through its living example, made possible the Canterbury Water Management Strategy and in turn the Land and Water Forum. The protagonists knew that economic and environmental gain together was possible.

Solutions for Maori economic aspirations in water could well come through water storage.  By contributing to the development of water storage, government can help create the headroom for negotiation and settlement, if such a settlement is justified.  

And note I used the word “contribute”, not “invest”.  We already have Crown Irrigation Investments to address the hurdle of early capital shortfall and the Irrigation Acceleration Fund and these have been welcomed by Federated Farmers.  But there is a case for government to directly contribute to water storage infrastructure, to create headroom for negotiation as I have just said, but also to reflect the contribution water storage makes to the environment and the community.  Consider that at the time the Opuha water was switched off to farmers, 8 cumecs were still flowing to meet environmental needs – four times the natural inflows.
Farmers are willing to pay for the benefit they receive from water storage.

But as I have mentioned water storage also provides the opportunity to improve habitat, increase environmental flows and provide recreation.  Both local and central government should also consider their financial contribution to reflect the public good.

If we are to truly make economic gain while supporting a healthy environment, decision makers need to ensure they get the science right.  As I mentioned at the beginning of this presentation the systems in which we operate are uncertain by their nature and information is often incomplete.  

The Prime Minister’s Science Advisor, Sir Peter Gluckman, is concerned that decisions made without the proper application of science can entrench policies which are of little value and are not easily reversible, because there may be a popular or political perception that they are effective when in fact they are not.  I share his concern. 

So our challenge is to ensure regulators, politicians and the judiciary make decisions that are in line with the science, and reflect the uncertainty of the time but are not paralysed by it.

The use of caution in the decision making process is essential, but the activist view of the Precautionary Principle, which in essence says do nothing until all risk is eliminated, is an example of the paralysis which we should avoid.
Decision makers need to distinguish between disagreement between parties and scientific uncertainty.  They need to understand what drives the certainty of any one party and put the uncertainty of experts in context. 

We have some evidence that councils and other decision makers are starting to get it right.

In the discourse on fluoridation, immunisation and 1080 we are seeing the public and decision makers starting to back science and reject the worn out and unsupported rhetoric of the anti-campaigners.

Water is more complex but the same principles apply.    

For some council’s the science surrounding genetic modification has not yet penetrated.  Are they playing a political game hoping central government will play the bad cop and get them off the hook?  I don’t know.  What I do know is that that attempts to duplicate control of genetic modification at the local level is based on scientific fantasy as much as anti-fluoridation, anti-immunisation and anti-1080.  What I do know is that significant biosecurity risks lurk in the garden plants of ratepayers but there is no call for strict liability there.

Is there uncertainty?  Of course there is, but conventional breeding is uncertain too. Do we need regulation? Of course we do, but that regulation should be seated in a competent central government authority and based on the risk not the technology.  

 Opportunities to be pest free, to reduce our environmental footprint, to increase productivity and create new products exist with such modern technologies.  These are the things which will prove our environmental credentials, not labels.  If you as councils want to have economic growth supporting a healthy environment then you need to ensure farmers have choice and access to the modern tools of science such as genetic modification and nanotechnology.

A lot has been said about farming to limits and for councils numbers make decision making much easier.  But I would remind you that the RMA was set up to be effects based and that blunt tools lead to dull outcomes.  We need to remind ourselves that farmers have only been talking nitrogen for about a decade.  The science is progressing quickly.  The challenge for regulators is to ensure that regulations are flexible enough to cope with the evolving evidence and to take account of improvements or reductions in water quality. 

It is my experience that farmers are environmentalists; why else would they dedicate their life to the land and spend over $1billion on the environment in five years? They are also problem solvers.  But they need to understand the problem before buying in.

However to make fast progress it requires strong balance sheets and good cash flows.  While it is unacceptable to go backwards regulators, environmentalists and the public need to understand that the rapid progress made in the last few years cannot be sustained when farmers are making a loss.

A growing economy can support a healthy environment but a shrinking one doesn’t stand much of a chance.  

The best way to achieve both a growing economy while supporting a healthy environment requires sound judgements by councils, with the appropriate use of science, engaging not enraging farmers, providing them with the tools of modern technology and seeking solutions which align economic and environmental outcomes. These are all requirements to grow sustainably.

 The downturn in dairy income isn’t an excuse  to ignore any requirements to be environmentally responsible but it will limit the ability to do more than necessary.

Apropos of the link between the economy and environment, Jim Rose says richer is greener:

The Kuznets environmental curve describes an empirical regularity between environmental quality and economic growth. Outdoor water, air and other pollution first worse and then improves as a country first experiences economic growth and development.

While many pollutants exhibit this pattern in the Kuznets environmental curve, peak pollution levels occur at different income levels for different pollutants, countries and time periods. John Tierney explains:

“In dozens of studies, researchers identified Kuznets curves for a variety of environmental problems.

There are exceptions to the trend, especially in countries with inept governments and poor systems of property rights, but in general, richer is eventually greener.

As incomes go up, people often focus first on cleaning up their drinking water, and then later on air pollutants like sulphur dioxide.

As their wealth grows, people consume more energy, but they move to more efficient and cleaner sources — from wood to coal and oil, and then to natural gas and nuclear power, progressively emitting less carbon per unit of energy. . . “

 Poorer people and countries have other priorities than the environment.

As the economy grows and incomes improve priorities change. The environment becomes more important and they can afford to protect and enhance it.


Rural round-up

July 21, 2015

Farmers And Forest & Bird Unite to Explain 1080 Facts:

The Pest Control Education Trust, a joint Federated Farmers and Forest & Bird initiative, today released ‘1080: The Facts’, a resource created to increase public understanding of 1080 and how it is used.

The fact sheet is an illustrated, easy-to-read rundown on which predators are targeted by 1080 and the native species that benefit from its use, and how using 1080 prevents the spread of bovine tuberculosis. It also outlines the precautions taken to ensure 1080 operations are safe.

Federated Farmers National Board Member and a Trustee of the Pest Control Education Trust (PCET) Chris Allen says the fact sheet has been produced in response to strong public demand for accessible, factual, summary information about 1080 and its use. . .

Open Country dairy slashes milk price forecast – Andrea Fox:

New Zealand’s second biggest milk processor Open Country Dairy has slashed its milk payout forecast by more than $1kg for the season as industry pessimism deepens about the multi-billion dollar dairy sector’s earnings outlook.

Open Country had until last week been forecasting a milk payment of $4.75-4.95kg milksolids to its around 700 national supplier farmers. 

Now it has told its farmers to instead bank on $3.65-$3.95kg. . .  

Partnership Helps to Set New Zealand Beef Apart From the Competition:

A partnership between Beef + Lamb New Zealand and a restaurant chain in Taiwan is helping to open consumers’ eyes to the nutritional benefits of grass-fed New Zealand beef.

New Zealand product makes up more than 80 per cent of the beef dishes offered on Royal Host’s menu.

The chain has 14 locations across Taiwan and caters for family dining in particular. Vice President Shirley Huang says local diners put a premium on safe, quality food, so Royal Host values that New Zealand beef is such a positive option. “In our menus, we include images of cows grazing peacefully on open pasture. New Zealand grass-fed beef is low in fat and has lower cholesterol.” . .

 

A2 shares fall as investors weigh up funding needs – Paul McBeth:

 (BusinessDesk) – A2 Milk Co shares fell to a three-week low as investors weighed up the company’s funding needs after the board turned down a potential offer from cornerstone shareholder Freedom Foods Group and US food and beverage firm Dean Foods.

The shares fell as low as 70 cents in morning trading on the NZX, and were 6.5 percent to 72 cents shortly before midday. A2 today said it told Freedom and Dean Foods the expression of interest wasn’t compelling enough to get a board recommendation if a formal bid was made, though was open to talking with the suitors. It has also attracted other potential bidders and is evaluating them. . .

Major Revamp of Dairy Awards:

The most significant changes in the history of the New Zealand Dairy Industry Awards have been made to enhance the competitions and enable more dairy farm workers to enter the awards programme.

Awards Executive Chairman Gavin Roden says he is excited about the changes that have been made to all three of the awards competitions.

“As an executive we had identified for a few years that there were a lot of people that couldn’t enter our awards because of the changing face of the industry and employment,” Mr Roden says. . .

Worker participation key to future safety:

After months of industry consultation, the forest industry has a new safety body – the Forest Industry Safety Council (FISC). Most importantly, there has been practical input from experienced forest contractors from on the forest floor and workers with experience at the bushline.

Some simple questions and answers may help explain how FISC will work:

Q: Who decided forestry needs a safety council?

A: The independent forest safety review team was not satisfied that people on the forest floor had a voice in making workplaces safer. Following the review and its recommendations, FICA has worked with forest owners and managers to put in place this new group. It will focus on safety using incident information reported by people working at the bushline to identify work areas. . .

 

Farmers get online survey option:

Farmers are for the first time this month completing their annual Agricultural Production Survey online.

Every year Statistics New Zealand surveys about 30,000 farmers about their land, livestock and crops, and farming practices.

This week farmers can start filling in their online survey forms, once they’ve received details in the post.

The survey measures changes in the sector, and is used for planning and forecasting. Farmers can use survey results on the Statistics NZ website to keep track of trends and make changes in their businesses. . .

 

Ballance appoints General Manager Sales:

Ballance Agri-Nutrients has appointed Campbell Parker as General Manager Sales.

Campbell will join the co-operative in October, following a successful banking career, including leadership of BNZ’s Partners Network and a track record in rural lending.

Ballance CEO Mark Wynne says Campbell combines sales leadership experience with a strong understanding and connection with the agri-business sector. . .

Bayer Central Otago Young Viticulturist of the Year 2015 announced:

Congratulations to Mike Winter from Amisfield who has just become the Bayer Central Otago Young Viticulturist of the Year 2015 and now goes through to the National Final. After a challenging day of activities on Friday at the Central Otago Polytechnic, the contestants’ final task was to deliver a speech at the Annual Winemakers Feraud dinner on Saturday night at Northburn.

It was a very close competition with Annabel Bulk taking 2nd place and Cliff Wickham coming 3rd, both from Felton Road Vineyard. . .

 

 


Rural round-up

July 17, 2015

Fonterra shares first results of business review:

Fonterra Co-operative Group Limited has provided a further update on its business review.

Chief Executive Theo Spierings said the Co-operative’s leadership was developing initiatives to deliver value right across the organisation.
“The key aims of the review are to ensure that the Co-operative is best placed to successfully deliver its strategy, increase focus on generating cash flow, and implement specific, sustainable measures for enhancing efficiency. . .

Fonterra top brass on notice from farmers as 523 jobs go in shake-up – Fiona Rotherham:

(BusinessDesk) – Federated Farmers says top management should be leaving Fonterra Cooperative Group if results don’t start improving in the next couple of years.

The comments, from Fed Farmers dairy chair Andrew Hoggard, were in response to the confirmation today by the world’s largest dairy exporter that it will cut 523 jobs to save up to $60 a million a year on its payroll in the first swathe of a major review of the business. Hoggard said he hoped the job losses were part of a wider strategy to redirect resources in new areas rather than a knee-jerk reaction to cut costs as dairy prices continue to fall.

“Fonterra has had a history of knee-jerk reactions like that where it gets rid of a whole bunch of people and then two years later hires them back again, or rather having got rid of people with institutional knowledge, they hire new graduates who can’t do as good a job,” he said. . .

Waipaoa Station moulds young farm cadets for workforce – Kate Taylor:

The physical nature of the work means some farm cadets he works with fill out and some get lean but they all change, says Waipaoa Station stock manager Jerry Cook.

The station and the Waipaoa Farm Cadet Training Trust welcomes five new cadets every year for two years – all straight out of school.

“They come in as kids and leave ready for the workforce. They might arrive still with a bit of puppy fat at 17 and leave two years later toned and strong and armed with the right skills to go farming as adults.” . . .

New Ospri head sees big opportunities ahead – Gerald Piddock:

New Ospri chief executive Michelle Edge has some bold visions for where she sees the organisation making a greater contribution to New Zealand agriculture.

Edge started her new role in May and said there were exciting opportunities ahead for Ospri’s (Operational Solutions for Primary Industries) two wholly-owned subsidiaries TBfree New Zealand and NAIT (National Animal Identification and Tracing).

“There’s also a range of business development prospects on the horizon,” she said. . .

 Enterprising Rural Women Awards open for 2015:

Entries have opened for the 2015 Enterprising Rural Women Awards (ERWA) offering women who run their own rural businesses the opportunity to boost their profiles and gain recognition for their achievements.

“This year is very special as we have a lot of interest in the awards and we’re already fielding enquiries from women keen to enter,” says Rural Women NZ national president, Wendy McGowan.

Last year’s supreme winners, Keri Johnston and Haidee McCabe from Irricon Resource Solutions have come on board as sponsors. They are enthusiastic about the awards and want to encourage other women in rural businesses to have an opportunity to get the benefits that their business has gained since winning in 2014.

The future of Fijian sugar cane industry not so sweet:

Fiji’s National Farmers Union says the future of the country’s sugar cane industry could be in doubt.

The country’s cane farmers have begun harvesting however many are facing delays of up to six months due to labour shortages.

The union estimates up to 40 percent of the country’s harvesting labour gangs aren’t operating as they are unable to find enough people to fill them. . .

Weaker NZ Dollar Helps Lift Value of Meat Exports:

Beef + Lamb New Zealand compiles lamb, mutton and beef export statistics for the country. The following is a summary of the first nine months of the 2014-15 meat export season (1 October 2014 to 30 June 2015).

Summary

Over the first nine months of this season, beef and veal returns and volumes have been higher than lamb and mutton.

Because of the significant size of the market, changes in Chinese demand – specifically, less lamb and mutton and more beef – impacted across all categories of New Zealand meat exports.

Meanwhile, the USD / NZD exchange rate averaged 0.76 in the first nine months of the current season, compared with 0.84 over the same period last season – a 10 per cent drop. This NZD weakness contributed significantly to this season’s higher average export values across all products. . .

 

LIC sires named best in season:

Two of LIC’s artificial breeding bulls were named sires of the season by Jersey and Holstein-Friesian breed societies at their annual conferences last month.

South Land Jericho received Jersey New Zealand’s JT Thwaites Sire of the Season award and San Ray FM Beamer received Holstein-Friesian New Zealand’s Mahoe Trophy.

LIC bull acquisition manager, Malcolm Ellis, said it is an honour for the co-op’s sires to be recognised by the societies again, after LIC sires took out both awards last year also. . .

Carrfields Group brand to commence market rollout :

The Carrfields Group brand will begin a market rollout from August 2015 and will be fully integrated across the New Zealand agrimarket by December 2015.

Carrfields is borne from the Carr Group’s acquisition of the Elders New Zealand business in August 2014. The name is representative of the South Island based Carr family who have farmed and built the Carr Group of companies over the past forty years from the fields of the Canterbury region. . .

 

 


Rural round-up

July 15, 2015

FMG gets $3m flood, snow claims – so far:

The country’s largest rural insurer Farmers Mutual Group says it has received $3 million worth of claims related to the flooding and snow that hit the country last month.

FMG said the severe flooding in the lower North Island prompted 264 claims from the Manawatu-Whanganui and Taranaki regions, and snow damage in Canterbury led to 80 claims being lodged.

General manager of advice and insurance Conrad Wilkshire said most of the claims were for damage to houses, contents, sheds, and farm equipment.

In one case, a farm building was swept down a river. . .

Fonterra’s rivals tell DIRA review there is insufficient competition for dairy industry deregulation – Fiona Rotherham:

(BusinessDesk) – Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry.

In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened.

Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. . .

 Kiwi Developed Sugar Substitute to Tackle Obesity Problem:

A new low-calorie sugar alternative made entirely from fruit and developed by Kiwis, is set to offer companies around the world a natural way to reduce sugar in everyday foods and beverages such as cereals, yoghurts and juices, without compromising flavour.

Developed by Kiwi and Chinese joint venture company Guilin GFS Monk Fruit Corporation, Sweet-Delicious is a natural fruit juice made from a small Chinese melon called monk fruit. As a natural low-calorie alternative to sugar and artificial sweeteners it is a new way to tackle the growing obesity epidemic. . .

 ‘Drought man’ coming to Lincoln:

“Innovate or stagnate” will be the main message from Grassmere farmer Doug Avery when he visits Lincoln University next Thursday.

Avery’s talk about turning drought and desperation into sustainability and success will take place on Thursday, July 16 at 7pm.

Avery, also known as the ‘drought man’, says he understands the value of farmers learning from farmers. . .

Fonterra strengthens ties with the Netherlands:

Associate Minister of Trade Todd McClay says a new Fonterra ingredients factory in the Netherlands, opened yesterday by Dutch King Willem-Alexander, marks an exciting step forward in agribusiness collaboration between New Zealand and the Netherlands.

The state-of-the-art factory in Heerenveen, Friesland, has been developed in partnership with Dutch conglomerate A-Ware Food Group, which has built a major new cheese plant next door.

Whey and lactose, by-products of A-Ware’s cheese-making process, will be processed into specialty ingredients by the Fonterra plant. These will be used in high-value paediatric, maternal, and sports nutrition products for sale in the European Union and beyond. . .

Kiwifruit Claim Wins First Round:

The High Court at Wellington has ruled in favour of The Kiwifruit Claim and against the Crown on all substantial points, in a judgment released on 8 July.

Kiwifruit growers and post-harvest operators who were negatively affected by Psa have untilFriday 9 October 2015 to sign up to The Kiwifruit Claim, the court has ruled.

The court said growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action, which had been opposed by the Crown Law Office (CLO). . .

Hemp seed food sales remain on horizon:

The adoption of a hemp seed food standard remains on the horizon, following work requested by the Food Standards Australia New Zealand Ministerial Forum earlier this year says Food Safety Minister Jo Goodhew.

“New Zealand supports a standard allowing the sale of hemp seed food products, and I am hopeful that the Ministerial Forum will be able to assess the proposed hemp standard again early next year,” says Mrs Goodhew.

“The best available science shows us that hemp seed is safe to eat and has positive nutritional properties. However, the Ministerial Forum had some unanswered questions when it met in January. . .

 

Review of Hemp as a Food:

The NZ Grain and Seed Trade Association (NZGSTA) was pleased to learn today that the Australia and New Zealand Ministerial Forum on Food Regulation (the Forum) was continuing to address some concerns around the sale of hemp seed foods for human consumption.

Responding to the Forum’s communiqué issued from Hobart Thomas Chin, association general manager, said the industry realises that the NZ Minister and officials were supportive of hemp seed foods and they are continuing with strong efforts to help see the development of a new cropping opportunity for NZ primary producers and manufacturers. . .

 

Wool Market Slightly Easier:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the first wool auction of the 2015/16 season offering 6,800 bales comprising predominantly 80 percent short second shear wools, saw a 92 percent clearance with a slightly softer tone.

Despite a weaker New Zealand dollar compared to the last sale on 25th June, with the weighted currency indicator down 1.96 percent, the bulk of the offering was firm to 2 percent easier.

Mr Dawson advises that the seasonal slow-down in order, approaching European vacation period and well stocked supply lines in China are limiting new orders for wool temporarily. . .

 


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