Rural round-up

February 3, 2014

Wairarapa Farmer wins NZ Rural Wetland Champion 2014 award:

Combining good farming practices with proactive steps to look after the wetlands on their beef and dairy farm, has earned the Donald family in the Wairarapa, the title of “National Rural Wetland Champion for 2014”.

To celebrate World Wetlands Day 2014 (Sunday February 2) the National Wetland Trust and the Department of Conservation (DOC) worked with regional councils around the country to find New Zealand’s most wetland-friendly farming families.

Wetlands are important to maintaining a healthy environment, playing a key role in water purification and flood control. Protecting wetlands and minimising the impact of farming on these ecosystems benefits everyone. . .

Tighter PKE screening welcomed:

Federated Farmers is pleased 4mm is being proposed as the minimum screening mesh for Palm Kernel Expeller (PKE) entering New Zealand.

“From 21 April, when the screening is set to commence, confidence in PKE as an imported animal feed should improve,” says Bruce Wills, the President of Federated Farmers.

“PKE is a recycled waste by-product of Palm Oil production. It does not drive that industry’s demand, just as plastic recycling does not drive demand for petrochemicals.

“If PKE isn’t used as supplementary animal feed, it is otherwise composted, burnt as waste and even sold as fuel for furnaces. . . .

Minister marks World Wetlands Day:

Conservation Minister Dr Nick Smith today marked this year’s World Wetlands Day with the launch of a new stamp in the Game Bird Habitat Collection Series.

“The Game Bird Habitat Stamp programme is aimed at raising funds to protect and enhance the habitat of our game birds. It’s a simple and inexpensive way to enable New Zealanders to give direct support to a great cause,” Dr Smith says.

The 2014 stamp features the pukeko, painted by landscape and wildlife artist Jeanette Blackburn, and the background habitat on the stamp is the Para Wetland in Marlborough. As well as the stamp, this year’s collection includes other related items such as a miniature sheet, first day cover and a limited edition signed Artist Print.

The items are sold through New Zealand Post to collectors and also used by Fish & Game to endorse hunting licences, with the funds raised going towards habitat conservation projects.  . . .

Inventor off to Cologne trade fair – Mark Price:

The Lake Hawea man who developed the what he branded the ”Slammertool” is taking it to what he calls the hand tool equivalent of the Olympics.

T. J. Irvin will attend the 142,000sq m international hardware fair Eisenwarenmesse in Cologne, Germany, from March 9-12.

”That No8 wire mentality New Zealand prides itself on – Eisenwarenmesse is the Olympics of that.”

He told the Otago Daily Times yesterday he would rather be at the Winter Olympics in Sochi but could not turn down an invitation to put his multi-purpose Slammertool up against the world’s best new tools – even though the trip will cost him $44,000. . .

Synlait’s John Penno explains the company’s success – Jamie Ball:

In the first of a two-part NBR ONLINE interview, primary industries reporter Jamie Ball talks to Synlait’s John Penno on how and why it currently all seems to be going so right for the Dunsandel-based milk company.

Canterbury-based Synlait group was founded in 2000. In February 2013, Synlait Farms and Synlait Milk were separated. Synlait Milk floated last July and is now 39.12%-owned by Chinese company Bright Dairy, 8.4% by Japan’s Mitsui & Co, and 7.5% by Dutch dairy giant FrieslandCampina. Synlait Milk’s IPO offer price, announced in July, was $2.20. Earlier this week, shares were trading at $3.82, a gain of 74%, valuing the company at $560 million. On January 28, Synlait Milk announced an increase of its forecast milk price for the FY2014 season from $8.00 per kg/MS to a range of $8.30 to $8.40 per kg/MS.The company also lifted its advance rates for the season effective from January, to be paid February, from $5.00 per kg/MS to $6.40 per kg/MS. Synlait Milk anticipates net profit of between $30 million and $35 million in the year ending July 31, up from the $19.67 million forecast in the company’s prospectus when it listed in July. . .

 

Synlait Milk joins board of leading industry body:

Canterbury dairy product manufacturer Synlait Milk has joined the Board of the Infant Nutrition Council (INC), allowing it to take a greater leadership role in industry issues.

INC, which represents 95% of the infant formula industry in New Zealand and Australia by volume, has welcomed Synlait to the new role and says the move will benefit both consumers and the industry.

“Synlait Milk is a fantastic New Zealand company, we are delighted to have them join our Board,” INC Chief Executive Jan Carey said.

“The Infant Nutrition Council is firmly committed to ensuring the safety and integrity of New Zealand’s infant formula industry. . .

 

Why Australians should support farmers during drought: NFF – Brent Finlay:

A recent editorial on drought assistance (Australian Financial Review 17 Jan 2014  “Don’t subsidise low rainfall”) raised the valid question – should Australians support farmers during drought?

In short, the answer has to be ‘yes’ if Australians want their high-quality food and fibre to continue to be produced on Australian soil.

A Productivity Commission report in 2009 concluded that the Interest Rate subsidies of the past did not necessarily reward farmers who were the best prepared for the droughts – an unavoidable feature of farming in Australia. As a result, it was the Gillard Labor Government, not Barnaby Joyce, as your editorial incorrectly suggested, that introduced concessional loans as a business restructuring support mechanism during severe downturns.

Additionally, it’s incorrect to say the Abbott Government ignored the PC report, or the need for fundamental shifts in the way drought support is structured, when extending this measure to cope with the rapidly deteriorating climatic conditions it faced upon election. . . .

US billionaire Foley may buy Martinborough Vineyard:

(BusinessDesk) – American billionaire Bill Foley may add to his wine interests in the Wairarapa region with the acquisition of pinot noir pioneer Martinborough Vineyard Estates.

Foley, through NZAX-listed Foley Family Wines, hasn’t yet gone through the due diligence process and isn’t at the stage of agreeing a price for the Martinborough vineyard, said chief executive Mark Turnbull. The parties are aiming to complete the transaction by March 31.

The business would add to the Te Kairanga Wines company, just down the road in the town of Martinborough that Foley acquired in 2011. Foley has been expanding his wine interests while building what Turnbull has called a vertical integration strategy which has included taking a 24.9 percent stake in celebrity chef Simon Gault’s Nourish Group restaurant chain. . .


Will there be a snap debate on this too?

August 16, 2012

On Tuesday parliament had a snap debate on the sale of what were the Crafar farms to Shanghai Pengxin.

It was called by the Opposition who, for reasons which are based far more on emotion than reason, are opposed to selling farm land to foreigners.

Last night Russel Norman’s Bill to restrict the sale of land greater in area than 5 hectares was defeated.

The bill was defeated by 61 to 59 with National, United Future and ACT opposed.

Quite why the Opposition have such an attachment to farmland when their policies show they have little understanding of farming or interest in its success escapes me.

I also don’t understand why farmland engenders such emotion when sales of companies like this go unremarked:

Foley Family Wines, owned by the California-based billionaire Bill Foley, will take control of New Zealand Wine Company, adding the Grove Mill, Sanctuary and Frog Haven brands to its suite of local wines.

NZ Wine Co shareholders approved the merger at a special general meeting in Blenheim today, with about 99 percent of votes cast in favour, the company said in a statement. 

The merger, which will see Foley take an 80 percent stake in the Marlborough-based company, has not yet been approved by the Overseas Investment Office.

Foley already owns the luxurious Wairarapa Wharekauhau estate and is chairman of two Fortune 500 companies, insurance firm Fidelity National and banking and payments technology company, Fidelity National Information Services.

He also owns the Vavasour, Goldwater, Clifford Bay and Dashwood wine brands.

NZ Wines shares are listed on the NZX alternative market and last traded at 92 cents.

I have no problem with this investment or foreign investment in general. Bill English explained earlier this week the country has a lot to gain from foreign capital.

But if the control of farm land and its produce by foreign owners exercises the opposition, why aren’t they equally concerned by what looks like a significant investment in another primary industry?

Could it be it’s not foreign investment per se but the nationality of the investors which is at the root of the opposition to the Crafar farms by the Opposition?

Contributions to Tuesday’s debate included speeches from Maurice WilliamsonTodd Mclay, Jonathan Coleman, and David Bennett.

And yesterday’s debate on Noramn’s Bill included this speech from Jonathan Coleman who had to withdraw the comment daconomics but introduced the term yokelnomics:


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