Rural round-up

March 27, 2019

Westland’s biggest shareholders sit on the fence over Yili offer:

Westland Milk’s biggest shareholders — investment fund Southern Pastures and the state-owned Landcorp — are biding their time over Yili’s takeover offer.

Hokitika-based Westland said this week that it had signed a conditional agreement for the sale of the co-op, which will see the Chinese dairy giant pay farmer-suppliers $3.41 a share.

Westland will seek shareholder approval for the proposed transaction at a special shareholder meeting, expected to be held in early July.

Southern Pastures, which has former All Black Graeme Mourie as one of its principals, owns 5.5 per cent of the co-op, which would be worth $13.6 million under the offer.  . . 

Nait a difficult beast but NZ ‘had no chance’ against M. bovis without it – Esther Taunton:

Cattle on 150 farms have been checked against national animal tracing records as part of efforts to wipe out the cattle disease Mycoplasma bovis but just one property passed muster.

Dr Alix Barclay, the Ministry for Primary Industries’ intelligence manager for the M. bovis response, said only one property had achieved a 100 per cent match with its National Animal Identification and Tracing (Nait) account.

The disappointing result highlighted the importance of making changes to the system, Barclay said. . . 

Hayward family cultivate success in South Canterbury by seizing the day – Samesh Mohanlall:

Farming operations flourish on hard work, seizing the chances that come your way and having people that are trustworthy around, the family of a successful South Canterbury venture say. 

Geoff Hayward and his wife Joy, who own and lease 1700 hectares of land for their sheep, beef and cropping operation across the Timaru district, told about 50 visitors to their Mt Horrible farm from the Beef + Lamb annual meeting on Thursday, that the key to their expansion is taking opportunities that come their way. . . 

Pitching in to protect mudfish:

They may be tiny, slimy and reclusive, but the Canterbury mudfish are well worth protecting. 

Kōwaro, as they’re named in te reo Māori, are a treasured species for local iwi Ngāi Tahu and having more of them around helps protect other freshwater natives such as kōura (crayfish) and kākahi (mussels).

Unfortunately, they’re also rare and endangered. 

Fonterra is providing funding to Environment Canterbury to help them implement innovative technology in what is the first project of its kind in the Southern Hemisphere. . . 

A2 names China CEO –  Gavin Evans:

(BusinessDesk) – A2 Milk Co has appointed Li Xiao as chief executive of its greater China operations.

Li was previously president of the Kids Entertainment Division of Wanda Group, a Chinese multinational which owns the Hoyts cinema group. He starts in the A2 Milk role at the end of April, based in Shanghai, and will join A2’s senior leadership team. He will report to the firm’s Asia-Pacific chief executive Peter Nathan and managing director Jayne Hrdlicka. . . 

Patience needed for Fonterra’s streamlining, says FNZC’s Dekker – Paul McBeth:

 (BusinessDesk) – Farmers and investors will need to be patient with Fonterra Cooperative Group’s overhaul of its business, which sometime-critic First NZ Capital analyst Arie Dekker says is moving in the right direction.

The cooperative’s board is working through a review of the business which has seen several assets put on the market to help cut the milk processor’s debt levels, and has signalled more divestments are coming. . . 

Miscanthus – the magic plant:

In a Rural Delivery television programme last year Prof Steve Wratten of Lincoln University described Miscanthus as a “magic plant”. Although there was a degree of poetic licence in that statement, it is very understandable why he described Miscanthus in that way. But there are no magicians involved. Miscanthus is a truly remarkable plant that has so many advantages and options for commercial use that people who hear about it tend to think “This is too good to be true!”.

So they ignore it. The phenomenal success of Miscanthus therefore actually detracts from securing serious interest in both growing and using it. Contrary to people’s initial reaction, what seems like hype, is in fact true. . . 

It’s time to strengthen trespass laws:

Activist trespassers are making a joke of our legal system – carrying out brazen invasions of private farms and walking away with a slap on the wrist, only to reoffend. It’s time for governments to act.

In recent months we’ve witnessed a spate of farm invasions by activists who think their opinions place them above the law.

These farm intruders are entering private premises, often in the dead of night, often while streaming live on the internet – all just a stones’ throw from where farmers and their families are sleeping.

Police and the court system have proven powerless to help, with those caught walking away with fines equivalent to a parking ticket. . . 


Rural round-up

March 8, 2019

Test will come when new cattle rustling laws applied

Livestock rustlers could spend up to seven years in prison when new penalties are imposed but a Northland farming official says police need more resources to investigate and take rural crimes more seriously.

The Crimes Amendment Bill, which was passed unanimously by Parliament on Tuesday, makes theft of livestock or any other animal, including beehives and farm dogs, an offence liable for up to seven years in prison.

Also passed was the offence of unlawful entry on agricultural land with the intent to steal livestock or to act unlawfully against specified things such as buildings or machinery on that land — a crime which could see the offender put behind bars for up to a decade.

It makes it the same penalty as for burglary. . . 

Water levels drop and fire dangers rise as drought continues in Nelson – Tim Newman:

Water restrictions in Nelson continue to tighten as the region continues its long dry period into the beginning of Autumn. 

Nelson’s Maitai Dam, which supplies the city with drinking water, has seen its water levels drop significantly during that time. 

Nelson City Council infrastructure group manager Alec Louverdis said the dam was currently 71 per cent full.  . . 

The future of food production from a female perspective:

Nine influential Kiwi women from across the primary industries sector are gathering in Manawatu next week to discuss where-to-next for our food producing nation. They’re coming together as part of the ASB Perspective 2025 round-table discussion, which is a headline event at this year’s New Zealand AgriFood Week in Palmerston North.

It’s the fourth year ASB has been the main sponsor of New Zealand AgriFood Week, which is delivered by the Central Economic Development Agency, and its unique perspective panel is considered a must attend event at the Globe Theatre in Palmerston North. . . 

Majority of beekeepers vote against commodity levy on honey:

Commercial beekeepers have voted not to support the introduction of a honey levy with only 23.56% voting for the introduction of a commodity levy.

Commenting on the result Bruce Wills, Chair of Apiculture NZ, the industry organisation which led the commodity levy proposal says: “It’s no secret that this is not the outcome I, or the Board, wanted to see. I believe it will set back the development of the honey industry, but I understand that at present commercial beekeepers are hurting with the erosion in honey prices as a result of over-supply, for all floral types other than mānuka honey.” . . 

Bids for Fonterra’s Tip Top due in by Monday – Jenny Ruth:

(BusinessDesk) – Indicative bids to buy Tip Top ice-cream from Fonterra Cooperative Group are due in by Monday, according to the Australian Financial Review which says it has seen a copy of the confidential information memorandum.

Its Street Talk column says the business is being pitched by First NZ Capital as a “unique opportunity to invest in an iconic New Zealand company with 80 years of heritage.”

While the memorandum talks about Tip Top’s “unrivalled market position,” it also notes that Unilever, which has the rights to Magnum ice-cream and a host of dairy free products, dominates the premium end of the market where the fat margins are. . . 

Fonterra appoints Judith Swales COO Global Foodservice:

Fonterra CEO Miles Hurrell has confirmed Judith Swales to the role of Chief Operating Officer, Global Consumer and Foodservice. This follows her appointment to the role in an acting capacity earlier this year.

Miles Hurrell says “Judith has been providing strong leadership into our Consumer and Foodservice business unit, and the momentum she has gathered deserves to be continued.” . . 

Scales Corporation enters into petfood joint Venture with Alliance Group:

Diversified agribusiness Scales Corporation Limited today announced an agreement to enter into a petfood Joint Venture (JV) with Alliance Group Limited (Alliance). Under the terms of the JV, Alliance will pay $15 million to acquire a 50% interest in Meateor’s New Zealand business and operations.

Managing Director Andy Borland says: “We are pleased to enter into a partnership with one of New Zealand’s leading farmer co-operatives. This venture is about developing New Zealand as the premier supplier of petfood proteins. We think the venture provides a number of benefits to the entire New Zealand petfood-supply industry including as an avenue for the industry to improve scale; improved relationships with customers including the ability to commit to longer-term relationships; an ability to move into higher value and added value ingredients; and ability to leverage extended customer and supplier networks.” . . 


Rural round-up

September 16, 2018

No answers and more mystery animal killings in South Island :

The identity of a South Island livestock killer remains a mystery.

Nine months ago Peter McLeod, who farms in Kauri Bush near Dunedin, was left with nine dead lambs – cattle from neighbouring farms were also shot and killed.

But the culprit was never caught.

Earlier this week three newborn lambs were killed in Mosgiel, bringing back bad memories for Mr McLeod. . .

B+LNZ welcomes Sir Peter Gluckman’s report on agricultural emissions:

Beef + Lamb New Zealand (B+LNZ) welcomes the final report from the Prime Minister’s former Chief Science Advisor Sir Peter Gluckman which effectively endorses B+LNZ’s approach for individual farm plans as a tool for helping the agricultural sector play its part in combating climate change.

In May of this year in launching its Environment Strategy B+LNZ set itself two ambitious goals – for the sheep and beef sector to be carbon neutral by 2050 and for every farm to have an active farm plan by the end of 2021. . .

Women want more time off-farms:

Rural women want more time off-farm, better sleep and more exercise to improve their wellbeing, a Farmstrong survey has found.

More than 800 farming women did the survey online or at in-depth, face-to-face interviews.

“There was also a high interest in other topics that Farmstrong focuses on including nutrition and thinking strategies to deal with the ups and downs of farming,” Farmstrong project manager Gerard Vaughan said.

“Some of the other topic areas that the survey revealed women are interested in include mindfulness, relaxation techniques, self-confidence and self-compassion.  . .

First NZ lifts Fonterra Fund to neutral; ComCom reiterates doubts on milk price asset beta – Rebecca Howard:

 (BusinessDesk) – First New Zealand Capital lifted its rating on the Fonterra Shareholders’ Fund to ‘neutral’ from ‘underperform’ and said the first signs of a change in approach look encouraging.

Fonterra’s full-year loss was disappointing but “with the recent changes in board chair (with annual election of three directors coming up) and CEO (interim) it was encouraging to see FSF take no time in fronting up and acknowledging the issues,” analyst Arie Dekker said. . .

Moths to combat horehound:

Two moths may now be imported into New Zealand to combat invasive horehound, following a decision by the Environmental Protection Authority (EPA).

The Horehound Biocontrol Group, a collective of farmers whose crops are infested with horehound, applied to introduce the horehound plume moth and horehound clearwing moth to attack the weed. Its application was supported by the Ministry for Primary Industries’ (MPI) sustainable farming fund. . .

OneFortyOne announces intention to purchase Manuka Island forest estate:

Australian forestry company, OneFortyOne (OFO) has announced its intention to purchase the Manuka Island forest estate in the Wairau Valley near Blenheim. The proposed purchase is now being reviewed by the Overseas Investment Office.

The Manuka Island estate is approximately 2000 hectares of forest and currently owned by Merrill and Ring. Manuka Island will be integrated and managed as one forest estate by Nelson Management Ltd, the management company for Nelson Forests. . .

On the farm: a guide to rural New Zealand life:

What’s happening on farms and orchards around Aotearoa New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

Te Tai Tokerau, Northland, turned a corner this week, the days were warmer and soil temperatures have lifted. Pasture covers are still a little ratty but in the next week grass will start growing faster than the stock can eat it. . .

Inspiring the next generation of farmers – sense of purpose – Livestock Farming:

We asked influencers in the industry why young people should choose farming as a career, they were both practical and poetic in their responses. The study of agriculture grows in popularity but how do we convey the realities of farming to encourage lengthy careers? As a strong community, it is important to show the enthusiasm and pride we have in our jobs.

RECONNECTION WITH FARMING

With meat and dairy products readily available 24-hours-a-day and even delivered to the door, it’s easy for people to forget about farming origins: “The moment that people domesticated plants and animals, settled down, and began to produce the kind of society in which most of us live today.” There is an evident rift between farming and the food on people’s plates. . .

 



Pre-election insecurity has already started

December 28, 2013

There will be an election next year.

Barring unexpected events it’s likely to be towards the end of the year.

In 2008 2011 Prime Minister John Key announced the election date in February which removed one of the uncertainties.

However, even if he makes an early announcement on the date again next year, other uncertainties remain aren’t good for business.

The general election in New Zealand next year is starting to weigh on the nation’s equity market and is also likely to weaken business confidence and the exchange rate, brokerage First NZ Capital said.

The election, to be held between September and November 2014, is expected to be an extremely close result between a National-led government and a Labour/Green coalition, First NZ said in a note, citing recent political poll results.

“The potential formation of a Labour/Green coalition government is likely to weigh on the performance of the New Zealand equity market and is already starting to impact performance,” the brokerage said. “The re-election of the incumbent National-led government would likely be greeted positively by investors and give rise to a rebound in the market.”

Stocks most likely to be negatively affected by a change of government are in the energy utilities sector such as Contact Energy, Meridian Energy, MightyRiverPower and TrustPower as well as those with regulatory risk including SkyCity Entertainment Group and Chorus, First NZ said.

Those most likely to benefit from a change include exporters such as Fisher & Paykel Healthcare and Sanford which would receive an earnings boost from a lower exchange rate, while Fletcher Building and Methven would benefit from Labour/Greens housing initiatives, the brokerage said.

That’s a very shallow analysis.

A lower dollar would help give higher export returns but it also pushes up costs of imports including fuel, machinery and raw materials.

It would also make the cost of repaying foreign debt higher and put pressure on wages.

Another very big risk from a change in government is more and higher taxes and less flexible employment law.

All of that would feed inflation which and push up interest rates which would add to the cost of doing business and impact on competitiveness.

It’s not just business which faces uncertainty next year.

The CEO of a charity which receives contracts from a ministry said that election year always makes life difficult as there is growing reluctance from government departments to make decisions when a change in government could result in significant policy changes.

This election year uncertainty is a strong argument for a four-year parliamentary term.

There would still be the costs and constraints of elections, but there would be one more year in each election cycle without them.


Economic sabotage

April 24, 2013

Ever since National came to power it has concentrated on making the economy stronger.

It is succeeding but more than a year away from the next election the spectre of a LabourGreen government is providing a hurricane force headwind.

The government has put a lot of effort into policies which encourage savings, investment and export-led growth and LabourGreen are sabotaging that.

The façade behind the Labour-Greens power plan is crumbling as it becomes clear their electricity nationalisation ‘plan’ is nothing more than deliberate economic sabotage for attempted political gain, Economic Development Minister Steven Joyce says.

“Comments made in recent days by Grant Robertson, David Parker, and Russel Norman show they don’t care about the damage to KiwiSaver accounts, mum and dad investors and the wider New Zealand economy,” Mr Joyce says.

“Financial analysts including JB Were, Woodward Partners, Milford Asset Management, First NZ Capital, Devon Funds Management and Forsyth Barr are unanimous in their condemnation. One has labelled it a ‘hand grenade’ to the New Zealand economy, while others have said it will cut the value of every New Zealanders’ KiwiSaver account and lead to rolling blackouts.

“Investment in new power generation would suffer as would wider investment in the New Zealand economy. The National-led Government is focused on attracting investment in new business and jobs for New Zealanders. Labour and the Greens would do the exact opposite.

“Kiwis are deeply suspicious about the Labour-Greens announcement and its timing. It’s simply economic sabotage.

“The great irony is that it’s clear the policy is not worth it for anybody. The last time that we had central planning of the power industry, prices went up faster. Labour’s own Cabinet paper in 2006 said it would push costs up.

“New Zealanders will see it for what it is: a cynical and selfish attempt by left-wing parties to play politics with the value of New Zealand’s economic assets.”

The market isn’t perfect but I’d rather put my faith in it than an army of expensive bureaucrats.

And I’d feel much happier investing in companies that weren’t going to be at risk from government interference.


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